The transaction has been priced at $540m and it is expected to be completed the end of this year, subject to regulatory approvals and customary closing adjustments.
Ontario solar portfolio includes eight facilities. These facilities were acquired by TransCanada between June 2013 and December 2014. The clean electricity generated from these facilities is being supplied to Ontario’s Independent Electricity System Operator (IESO) under 20-year feed-in tariff (FIT) contracts.
TransCanada's president and CEO Russ Girling said: "This transaction demonstrates our financial discipline as we continue to build on our vision of being North America's leading energy infrastructure company.
"The proceeds from this sale will help fund our $24 billion near term capital program while maximizing value for our shareholders."
TransCanada has a total power portfolio of 6.2GW which is claimed to be sufficient to be supplied to more than six million households, according to its website. Out of this, it says that more than half of them are low and non-emitting sources including natural gas, nuclear, solar and wind including the 365MW Cartier Wind Energy in Canada.
In April, the company sold its 13 New England hydroelectric generation assets to Great River Hydro, an affiliate of ArcLight Capital Partners, for $1.065bn.
The assets, with a total generating capacity of 584MW, are located in New Hampshire, Vermont and Massachusetts.
Image: The $540m transaction is expected to be closed by the end of this year. Photo: Courtesy of TransCanada.
