The solar projects’ acquisition came at a price of C$185m ($181m) of which Canadian Solar has paid up C$ 70m ($69m) and the remainder of the payment will be disbursed on the project reaching certain pre-defined milestones.
Also, as part of the agreement Canadian Solar has issued to SkyPower a warrant for 9.90% of Canadian Solar’s outstanding shares, with an exercise price of US$5.00 per share.
Each of the 16 solar projects is under a 20-year power purchase contract by the Ontario Power Authority.
With a cumulative capacity of 190-200MW energy, 15 of the projects are contracted under Ontario’s Feed-In-Tariff program while a solitary one, under Ontario’s Renewable Energy Standard Offer Program.
Expected to generate C $800m ($785m) in combined revenues construction of the the projects is expected to commence in 2013 and they will be fully operational in 2014.
The newly-formed JV between the two companies will look to combine Canadian Solar’s competencies in PV module manufacturing, installation and operations with SkyPower’s expertise in developing solar projects in regions where a limited supply of electricity is achallenges for the region’s growth.
