one of the world’s largest solar power companies, today announced that it has sold 49% interest in three solar photovoltaic projects in Mexico totaling 370 MWp to Korea Electric Power Corporation, South Korea’s largest electric utility, and Sprott Korea, a leading fund manager (“Sprott”). KEPCO and Sprott acquired the interests in the Horus (119MWp), Tastiota (125MWp) and El Mayo (126 MWp) 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 the projects’ construction. Horus construction is under way with COD expected in Q2 2020, Tastiota and El Mayo COD is expected in Q1 2021. Once operational, the projects are expected to generate 900 GWh of clean electricity annually, enough to power 206,000 households and offset 524,000 tons of carbon dioxide emission each year. 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 organized 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 U.S. in 2018.
“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,” said KEPCO’s President and CEO JongKap Kim. “We are pleased to be working again with Canadian Solar, an industry-leading developer, and expect further cooperation in the global solar market.”
“The investment by KEPCO and Sprott in our portfolio further illustrates the success of Canadian Solar in the Mexican solar energy market. This is the second sale of projects developed by Canadian Solar in Mexico and strengthens our position in this growing electricity market,” said Dr. Shawn Qu, Chairman and CEO of Canadian Solar. “We are pleased to have partnered again with KEPCO, a global energy leader, and financial investor like Sprott and look forward to continuing our successful collaboration.”
“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,” said CEO of Sprott Asia, Jay Lee. “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 U.S and Europe, as well as in Latin America.”