Canadian Solar is to sell 70% stakes in two solar farms in Brazil totalling 738MW to SPIC Brasil for an undisclosed price.
The 446MW Marangatu and 292MW Panati-Sitia projects are located in Piaui and Ceara in the north east of the country.
The duo, which cover an area of 2200 hectares, are at advanced stage of development and are expected to begin construction in late 2022 and reach commercial operation in late 2023.
About 75% of Marangatu and Panati-Sitia’s electricity is already committed through long-term power purchase agreements, with the remaining to be sold in the free market.
Canadian Solar chairman and chief executive Shawn Qu said: “We are pleased to partner with SPIC Brasil in this transaction for the Marangatu and Panati-Sitia projects, which will meaningfully contribute towards Brazil’s goal of obtaining 23% of its energy from non-hydro renewable energy sources by 2030.
“With the completion of this sale, Canadian Solar will have successfully monetised 2.3GWp of utility-scale solar projects in Brazil.
“We will continue to execute and monetise our remaining backlog of 1.6GWp of high-quality, contracted solar projects in Brazil.
“Canadian Solar is a leader in the Brazilian market, and we will expand our leadership across more Latin American markets, including Colombia and Chile.”
SPIC Brasil chief executive Adriana Waltrick said: “We know that solar energy is a fundamental source for the energy transition towards a low carbon economy.
“SPIC group already has an extensive experience in implementing solar projects, being one of the main competitors in the sector worldwide.
“This acquisition marks the company’s first solar investment in Brazil and the partnership with Canadian Solar is strategic, given Canadian Solar’s experience and pioneering spirit on solar projects implementation and manufacturing.”
The closing of the transaction depends, among other precedent conditions customary for this kind of deal, on the approval of the competent anti-trust regulatory agencies.