The acquisition includes the 13MW each Sandringham and Woodville solar energy centers, which started operations in 2013.
The projects are under 20-year feed-in-tariff (FiT) contracts with the Aa2-rated Ontario Power Authority.Over the next twelve months, the two operating solar projects are expected to generate unlevered cash available for distribution (CAFD) of $10m.
TerraForm Power CEO Carlos Domenech said: "This acquisition marks our fifth external M&A transaction since our IPO just nine months ago, further demonstrating the strength and agility of the combined TerraForm-SunEdison platform.
"It also illustrates our ability to supplement the organic project drop downs from our sponsor, SunEdison, with high-quality third party project acquisitions."
The company plans to finance the acquisition using existing balance sheet liquidity.
Subject to regulatory approvals and customary closing conditions, the transaction is due to close in the second quarter of 2015.
