Canadian Solar has divested its 49% stake in three solar projects in Mexico to Korea Electric Power Corporation (KEPCO) and Sprott Korea. Together, the projects have a combined capacity of 370MW.
KEPCO and Sprott acquired the stakes in Horus (119MW), Tastiota (125MW) and El Mayo (126MW) solar projects, which are located in the two Mexican states of Aguascalientes and Sonora.
Canadian Solar chairman and CEO Dr Shawn Qu said: “The investment by KEPCO and Sprott in our portfolio further illustrates the success of Canadian Solar in the Mexican solar energy market.
“This is the second sale of projects developed by Canadian Solar in Mexico and strengthens our position in this growing electricity market.”
Canadian Solar, which developed the three projects, will supply the solar modules for the projects and manage their construction.
Horus solar project is expected to be completed by the second quarter of 2020, while Tastiota and El Mayo are slated for completion in the first quarter of 2021.
The projects are expected to generate 900GWh of clean electricity annually, which is enough to power 206,000 households in the region while offsetting 524,000t of carbon emissions per year.
The clean energy generated by these facilities will be sold under 15-year power purchase agreements (PPA) as well as 20-year clean energy certificates that were awarded to the project in 2017 during the third government auction organised by CENACE.
Additionally, KEPCO and Sprott have agreed to acquire Canadian Solar’s remaining stake in the projects, once they become operational.
KEPCO president and CEO JongKap Kim said: “This high-quality solar portfolio is a strategic addition to our international renewable energy holdings and will allow us to further diversify our generation portfolio.”
Financial details of the deal have not been divulged by either company.