Canadian Solar sells solar power plant in Japan for $205m

19 February 2020 (Last Updated February 19th, 2020 10:02)

Canadian Solar has sold a solar power plant in the Yamaguchi Prefecture, Japan, to Hana Financial Investment for an enterprise value of JPY22.3bn ($205m).

Canadian Solar sells solar power plant in Japan for $205m
Yamaguchi Shin Mine solar facility began commercial operations in May 2018. Credit: Chelsea / Unsplash.

Canadian Solar has sold a solar power plant in the Yamaguchi Prefecture, Japan, to Hana Financial Investment for an enterprise value of JPY22.3bn ($205m).

Hana Financial Investment is a subsidiary of South Korean company Hana Financial Group.

The company said that the divestiture of its 56.3MWp solar facility was originally planned for the fourth quarter of 2019, but got delayed due to regulatory and contractual obligations.

Equipped with solar modules of Canadian Solar, Yamaguchi Shin Mine solar facility began commercial operations in May 2018.

The clean energy generated by the solar farm is supplied to Chugoku Electric Power Company under a 20-year agreement.

As part of the deal, the Canadian company will continue to provide asset management, as well as operation and maintenance services for the plant after the deal.

In addition, the company has signed a five-year profit-sharing agreement. The agreement will generate additional revenue for the company if the power plant outperforms agreed-upon metrics.

Canadian Solar chairman and CEO Dr Shawn Qu said: “Canadian Solar is excited to announce the completion of the sale of our Shin Mine project.

“This transaction structure ensures that we capture stable, long-term revenue streams for our asset management and operations and maintenance services.

“We expect to grow this business as we work to enhance and retain a greater share of the value creation throughout the life cycle of solar power plants.”

In December 2019, the company sold the Izu-shi solar power plant in Japan to Canadian Solar Infrastructure Fund (CSIF) for JPY4.6bn ($42.1m).

Located in the Shizuoka Prefecture, the Izu-shi solar power plant is equipped with 30,202 KuMax modules that were delivered by Canadian Solar.