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

  • Ford GT supercar in production at Markham's Multimatic plant
  • Quebec aerospace industry in good shape despite setbacks
  • Manufacturing down in February in both Canada and US
  • More consultation, less domestic content for Ontario's green energy process
  • Canada adopts ISO 20022 international electronic payment standard
  • Alphabet's Chairman praises Toronto technology as Google's Sidewalk Labs announces living "technology lab" for Toronto Portlands
  • Industrial Control System Security Essential to Businesses
  • Thunder Bay wind farm gets government approval
  • Toyota celebrating 50 years in Canada with Special Edition Corolla S
  • Giant wind-solar development announces SMA Canada for O&M
  • Scientists Work to Grow, Create, Imitate Organs and Tissue
  • GE Aviation opens new robotics facility in Quebec
  • Mobile Office Pod Engineered in Nissan Van for Remote Workers
  • Wind capacity reaches 82,183 megawatts in US, enough to power 24 million homes
  • Canada keeping up pressure on US for Keystone XL approval
  • Major iron ore mine gets approval in Newfoundland & Labrador
  • Advanced manufacturing initiatives to drive innovation, growth
  • Andritz to manufacture stator coils for NA hydropower market in Peterborough
  • Solar Powered Cars — how practical is it; who is working on it; when is it coming? 5 companies profiled.
  • Growing Quebec aerospace industries will need skilled labour
Scroll to Top