Canadian Solar unit Recurrent Energy signed a solar power agreement with Southern Power, a unit of Southern Co. Southern Power will buy a controlling interest in the 200 MW Tranquillity Solar Power Project in California. The project, developed by Recurrent Energy, is currently under construction.
Under the terms of the agreement, Southern Power will acquire about 51 percent of the solar power project. Canadian Solar will retain 49 percent ownership and contribute its share of the investment required to complete the construction of the project, which the company has fully financed through a construction and back-leveraged loan facility with a syndicate of six banks.
The Tranquillity project, covering an area of 1,900 acres in Fresno County, is expected to reach commercial operation in the fourth quarter of 2016 with Signal Energy Constructors as the provider of engineering, procurement, and construction services.
The project is being constructed on 1,900 acres of land in Fresno County, California. Expected to create about 500 construction jobs, the facility will consist of more than 800,000 polycrystalline photovoltaic solar modules, mounted on tracking tables.
The project is expected to generate enough clean solar energy to power about 55,000 homes. The electricity and associated renewable energy credits (RECs) generated by the facility will be sold to Southern California Edison under a 15-year power purchase agreement.
The project is expected to enter commercial operation in the fourth quarter of 2016.