Recurrent Sells Stakes in Ontario Solar to Mitsubishi, Osaka Gas

Recurrent Energy LLC, the U.S. unit of Sharp Corp. (SHCAY) that develops solar-power plants, sold to Mitsubishi Corp. (8058) and Osaka Gas Co. a majority stake in nine of its projects in the Canadian province of Ontario.

Mitsubishi and Osaka Gas each bought 45 percent of Recurrent’s Smiths Falls I-VI and Waubaushene III-V projects, according to Recurrent’s Chief Executive Officer Arno Harris. San Francisco-based Recurrent will own the remaining 10 percent.

The deal is “a sign of how deep the capital pool is for solar and how established solar is now as an asset class,” Harris said today by telephone. “This is exactly the kind of thing that we anticipated would happen as solar begins to enter the mainstream,” he said.

The projects total about 100 megawatts in capacity, or half of Recurrent’s contracted capacity in the province, and are expected to be completed next year, the company said in an e- mailed statement. The purchase price wasn’t disclosed.

Recurrent has 200 megawatts of 20-year feed-in tariff contracts with the Ontario Power Authority, which will pay C$0.44 ($0.43) a kilowatt hour.

To contact the reporter on this story: Andrew Herndon in San Francisco at aherndon2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net