Canadian Solar divests of 56.3 MW Yamaguchi Shin Mine solar PV plant

Canadian Solar Inc. has completed the sale of Yamaguchi Shin Mine, a 56.3 MWp operational solar power plant in the Yamaguchi Prefecture in Japan.

Hana Financial Investment, a subsidiary of Hana Financial Group, acquired the solar power plant for an enterprise value of approximately JPY22.3 billion (USD202.8 million). Canadian Solar expects to recognize the revenue from the transaction in the first quarter of 2020. The sale was originally planned to close in the fourth quarter of 2019 but was delayed due to regulatory and contractual obligations required to be met prior to closing the transaction.

Yamaguchi Shin Mine reached commercial operation in May 2018 and is powered by Canadian Solar high-efficiency modules. The electricity generated is being purchased by Chugoku Electric Power Company, Inc. for 20 years.

Canadian Solar will continue to provide asset management as well as operational and maintenance services for the plant after the transaction. Additionally, a 5-year profit sharing agreement is in place, enabling Canadian Solar to secure additional revenue after the sale should the power plant outperform agreed upon metrics.