Canadian Solar has sold stakes in three photovoltaic plants in Mexico, totalling 370MW, to South Korean investors.
Korea Electric Power Corporation (Kepco), South Korea’s largest electric utility, and fund manager Sprott Korea acquired 49% interests in the 119MW Horus, 125MW Tastiota and 126MW El Mayo projects located in the states of Aguascalientes and Sonora.
Under the agreement, Kepco and Sprott will acquire Canadian Solar’s remaining interest in the projects following their commercial operation date.
Canadian Solar developed the three projects and will supply the modules and manage construction.
Horus is expected online in the second quarter of 2020, and Tastiota and El Mayo are expected online in the first quarter of 2021.
The electricity generated will be sold under 15-year power purchase agreements for energy and capacity and 20-year for Clean Energy Certificates awarded in November 2017 in the third government auction organised by CENACE.
The transaction marks Kepco and Sprott’s first investment in the solar market in Mexico and the second transaction with Canadian Solar, following the acquisition of the Astoria, Astoria 2, and Barren Ridge projects in the US in 2018.
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.
“We are pleased to be working again with Canadian Solar, an industry-leading developer, and expect further cooperation in the global solar market.”
Sprott Asia CEO Jay Lee added, “The transaction represents the best co-investment structure that can be deployed by strategic and financial investors in terms of collaboration among three partners and investment stage.
“Based on the strong partnership with Kepco and Canadian Solar built in the last two transactions, we expect to develop further investment opportunities in the US and Europe, as well as in Latin America.”