Dec. 28 (Bloomberg) -- Canadian Solar Inc., a solar-panel maker, agreed to buy four solar-power projects from MEMC Electronic Materials Inc.’s SunEdison subsidiary for C$37 million ($37.2 million).
Canadian Solar completed the purchase of two projects, capable of generating about 24 megawatts direct current, and is buying two other Ontario solar power plants with a capacity of about 22.5 megawatts, according to a statement from the Guelph, Ontario based-company today. It also has the option to buy a fifth project at a later date.
The company may own more projects in the future, instead of just selling panels and developing facilities, Canadian Solar Chief Financial Officer Michael Potter said in a Dec. 10 interview. It’s developing about 260 megawatts of projects in Ontario that it expects to sell for C$1.3 billion during the next 18 months, he said.
“We are very pleased to announce this transaction with SunEdison, which further demonstrates Canadian Solar’s ongoing investment and commitment to the Ontario solar energy market, and continues Canadian Solar’s growth of its global solar project portfolio and higher margin total solutions business,” Shawn Qu, chairman and chief executive officer, said in the statement today.
The two projects purchased are expected to be fully operational by the end of next year. They account for about $20 million of the price, according to a Canadian Solar representative who asked not to be identified because of company policy. The other projects may be running by late 2013 or early 2014. The transaction settles litigation filed last year between the two companies.
Each of the five projects has a 20-year power purchase contract under Ontario’s Feed-in-Tariff program, Canadian Solar said.
Canadian Solar fell 3 percent to $3.27 at the close in New York.
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