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

  • Infrastructure Ontario seeks proposals for Highway 427 expansion
  • Growing Quebec aerospace industries will need skilled labour
  • Supply of oil at record highs, at 100 million barrels a day for the “first time ever”; expected to grow
  • Canada's economy grew in Q4, manufacturing up in December
  • Bombardier announces firm CSeries orders from Russia, Gulf Air
  • MRO in space: Inside a routine Maintenance-Repair-and-Overhaul mission with NASA: sealing, lubricating and keeping cool
  • GM restructuring goes forward with agressive job cuts in Ontario designed to save billions of dollars — at the same time they recruit new hires?
  • Manufacturing sales up in September but shadow of Trump looms over Canada
  • Bombardier Challenger 350 set to fly with NetJets
  • Honda to spend $492 million on Alliston plant upgrades
  • Scientists Create Remarkable Graphene Filter
  • Researchers Test Feasibility of EmDrive and Mach Effect Thrusters
  • Stronger concrete made from recycled tires developed by UBC Engineers: could help reduce carbon footprint of 3 billion tires-a-year
  • Canadian car sales break record amid concern about investment in the industry
  • Manufacturing takes a hit as water heater plant closes in Fergus
  • Widespread gains in June manufacturing sales encouraging sign in sluggish economy
  • Successful SpaceX human flight transport launch test of Dragon crew capsule, Elon Musk elated but "emotionally exhausted"
  • Diesel emissions fallout continues: US. to sue Chrysler Fiat if talks fail
  • Canadian company to provide modular housing for refugees in Sweden
  • News of extra jobs tempered by caution in Ontario auto sector
Scroll to Top