Canadian Solar could earn $2.3 billion through acquisition of Recurrent Energy

Canadian Solar has bought Recurrent Energy, a California-based subsidiary of Japan’s Sharp Corporation, for $265 million. Canadian Solar, one of the top ten solar panel makers worldwide, is headquartered in Guelph, Ontario, though it is a Chinese-owned company. According to a statement from Canadian Solar, the acquisition will increase the company’s solar project pipeline by approximately 4 gigawatts to 8.5 gigawatts, and its late-stage pipeline to 2.4 gigawatts, with the addition of Recurrent’s late-stage pipeline of 1 gigawatt. The late-stage projects could earn the company “at least $2.3 billion” over the next two years, Canadian Solar said in its statement.

Late-stage pipeline projects are those with utility contracts already signed. They include 200 megawatts to be delivered to Austin Energy, and an additional 276 megawatts to two California utilities. The projects are scheduled to be built by late 2016, before a federal tax credit for solar power construction is to expire.

solar-panel-photovoltaic-Canadian-Solar-utility-power-generation-EDIWeekly

The acquisition marks a change for Canadian Solar, which until now had built and sold solar projects to corporate and industrial customers. With the purchase of Recurrent, which will be operated as an independent subsidiary, Canadian Solar will now own and operate power plants as well. The move broadens the company’s project development and financing capabilities, including setting up its own Yield-Co. This would be in the form of a publicly traded entity holding Canadian Solar’s power plant assets. The sale of shares through the yield-co would raise money for further project development.

Canadian Solar CEO Shawn Qu called the acquisition an important milestone for the company, placing it “firmly among the leading global solar energy companies” and broadening its strategic options, including “potentially” owning and operating solar power plants.

Canadian Solar is currently focused on developing and construction solar projects in North America, China, Japan, Brazil and Honduras.

Did you miss this?

Other Popular Stories

  • CSeries engine problem just an oil seal leak: Pratt & Whitney
  • Nuclear industry makes do with refurbishment as new plants cancelled
  • Robot from Oil & Gas Technology Centre may improve safety, enhance productivity and reduce costs for offshore oil and gas projects
  • New catalyst could help bring hydrogen fuel economy closer
  • First Nation's groups propose specific risk mitigation that could "save the pipeline"
  • Magellan gets $110 million contract for Canadian satellite program
  • Renewables poised for big growth in short term: IEA
  • GE Aviation opens new robotics facility in Quebec
  • Andritz to manufacture stator coils for NA hydropower market in Peterborough
  • A cloaking device possible? Stealth technology studies virtual invisibility through "irradiating with its own specific pattern"
  • Oil production should grow 33 per cent in Canada by 2030, despite lower oilsands spending
  • CAE USA wins $200 million contract for Army training
  • Scientists create liquid fuel from solar energy
  • Another successful test: Crew Dragon flawlessly docks with Internataional Space Station
  • Aerospace industry fuelled by emerging markets: BMO
  • Magna unveils newest concept car, posts strong Q4 profits
  • First vehicle powered by sodium-ion battery shown in UK
  • Chinese market for water pumps expected to triple by 2017
  • World will invest $7.8 trillion in solar, wind over next 25 years: Bloomberg
  • Space X's Falcon Heavy could explode with the force of a nuclear weapon; over 1400 airline flights delayed by space launches in 2018
Scroll to Top