Solar power company Canadian Solar announced that its subsidiary — solar project developer Recurrent Energy —has signed off on an agreement with Southern Power in which Southern will take hold of a controlling interest in the 200MW Tranquillity Solar Power Project in California.
The project, which is being developed by Recurrent Energy, is currently under construction.
As part of the new deal, Southern Power will gain approximately 51% of the solar power project, while Canadian Solar will retain 49% and dole out its share of the investment needed to complete the construction of the installation.
The Tranquillity project is expected to cover an area of 768 hectares in Fresno County and is slated to reach commercial operation by the fourth quarter of 2016. Signal Energy Constructors will provide engineering, procurement, and construction services at the project.
Once completed, the site is expected to produce enough energy to power around 55,000 homes.
Power and associated renewable energy credits (RECs) produced by the plant will be sold to Southern California Edison through a 15-year power purchase agreement.
Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar, said: “The Tranquillity project is an attractive opportunity for investors, providing long term stable cash flows. This transaction is another example of solar power's move into the mainstream energy mix, and it shows our broader team's ability to attract top notch investors to finance our high-quality projects."