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

  • Canada's small businesses encouraged to invest for success
  • Time running out for dealing with global greenhouse emissions: report
  • Slight drop in April manufacturing sales due to petroleum, aerospace
  • Federal government must help Ontario close widening "skills gap" through immigration reforms
  • Three Out of Four Energy Companies Hit by Cyber-Attacks in the Last Year
  • Irving Shipbuilding wins $2.3 billion icebreaker contract with navy
  • 91% of coal-fired power plants are leaking toxic chemicals into groundwater: report
  • First vehicle powered by sodium-ion battery shown in UK
  • Elon Musk's green vision extends to the Tesla Semi, capable of hauling 80,000 pounds for up to 400 miles on a single 30 minute charge
  • New GO buses will be assembled in GTA
  • Canadian oil production up; producers turning to railways for shipment
  • Labour groups welcome interim report on precarious workers in Ontario
  • New Boeing 737 Max 8 crash mystery. Why did Lion Air flight 610 crash, killing 189 people, only 13 minutes after take-off?
  • More government support for Quebec aerospace industry
  • Honda to spend $492 million on Alliston plant upgrades
  • Commodities firm sues Shell, BP, Statoil for price fixing
  • General Dynamic Land Systems $15-billion deal with Saudis at risk over Kingdom's alleged involvement in murder plot
  • US could be free of non-North American oil by 2020
  • Breakthrough vehicles that dare to change the auto industry: 1300 hp EVs and 300 km ranges
  • GE Aviation opens new robotics facility in Quebec
Scroll to Top