Canadian Solar & Photon Energy to develop 1.14 GW solar projects in Australia

This article is part of a daily series of IPP articles. If you want to know more about the latest power generation projects globally visit our IPP Today section. You can receive them by email on a daily basis.

Canadian Solar Inc, an international solar power company, has entered into an agreement with Photon Energy NV to co-develop five utility-scale solar power projects, with a total capacity of 1.14 GWp. The projects are located in New South Wales, a state in the south-east of Australia.

Canadian Solar will acquire a 51% shareholding in the five project companies that respectively own:

• 316 MW solar project in Gunning
• 178 MW project in Mumbil
• 165 MW project in Gunnedah. The solar PV plant will be constructed on an area of 205 hectares.
• 286 MW project in Suntop. The plant will be constructed on an area of 400 hectares.
• 196 MW project in Maryvale

The project in Gunning is fully owned by Photon Energy. The other four projects are partly owned by Polpo Investment. After the transaction has closed, Photon Energy will retain a 49% stake in the Gunning project and 24.99% stakes in the four other projects.

The equity capital contributed by Canadian Solar will cover the development budgets to bring all five projects to the ready-to-build stage. Though it is subject to certain development milestones, joint management processes and other terms customary for project co-development.

Photon Energy owns the largest utility scale solar project pipeline in Australia. The commissioning of these plants will add to the 50 MWp projects that the company has built and commissioned since its foundation in 2008. It has also provided operation and maintenance services to power plants with over 200 MWp capacity.

This acquisition adds to Canadian Solar's considerable list of recent achievements regarding solar projects in Australia. In early January, we reported the financial close of the company's Oakey 2 solar farm in Queensland, which was achieved through a senior debt facility provided by the Clean Energy Finance Corporation (CEFC) of approximately AUD55 million (US$42.8 million). The project has a capacity of 70 MW. 

Furthermore, in May 2017, the company achieved the financial close of two other solar farms in Queensland - 30 MW Oakey 1 and 17 MW Longreach.

Photon Energy was advised throughout the partner selection process by Pottinger. It received legal advice from Hogan Lovells and Clifford Chance.