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December 20, 2018

Recurrent Energy divests Mustang Two solar project to SFA

Recurrent Energy, a wholly owned subsidiary of Canadian Solar, has completed the sale of its Mustang Two solar project to Solar Frontier Americas (SFA), a US-based subsidiary of global energy solutions company Showa Shell Sekiyu KK.

Recurrent Energy , a wholly owned subsidiary of Canadian Solar, has completed the sale of its Mustang Two solar project to Solar Frontier Americas (SFA), a US-based subsidiary of global energy solutions company Showa Shell Sekiyu KK.

Covering 1,400 acres of land in Kings County, California, the Mustang Two solar project is expected to create nearly 400 employment opportunities during the peak construction period.

Recurrent Energy will continue to manage the development of the project, while SFA will finance and manage the construction of the project.

The project is expected to begin its commercial operations in 2020 and will be operated by SFA’s independent power producer (IPP) business.

The energy generated from the facility will be supplied to Peninsula Clean Energy and the Modesto Irrigation District, which will receive 100MWac, and 50MWac, respectively under long-term power purchase agreements (PPAs).

“We already have a substantial greenfield pipeline and are actively acquiring utility-scale projects and development assets to further scale our business.”

Solar Frontier Americas ‘ IPP business unit CEO Charles Pimentel said: “With this important acquisition, SFA further expands its U.S. business to become an independent power producer, an owner of operating electric power facilities.

“We already have a substantial greenfield pipeline and are actively acquiring utility-scale projects and development assets to further scale our business.”

The combined energy generation from the two PPAs will be enough to power 37,500 homes with clean electricity.

Canadian Solar chairman and CEO Shawn Qu said: “The Mustang Two transaction is the latest example of the strong demand we see globally for Canadian Solar’s high-quality solar assets, given our ability to partner at various points in a project’s development.

“We are pleased to partner in this transaction with Solar Frontier Americas , given its extensive solar project development and construction experience.”

Currently, Recurrent Energy has nearly 5GW of solar and storage projects in development in the US, while Solar Frontier Americas (SFA) continues to develop more than 1 GW of utility-scale solar power generation facilities.

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