Canadian Solar sells 49% in 370 MW solar portfolio in Mexico

Canadian Solar Inc. has sold 49% interest in three solar photovoltaic projects in Mexico totaling 370 MWp (294 MWac) to Korea Electric Power Corporation (KEPCO) and Sprott Korea, a leading fund manager.

KEPCO and Sprott acquired interest in the Horus (119 MWp), Tastiota (125 MWp) and El Mayo (126 MWp) projects located in the states of Aguascalientes and Sonora. According to the agreement, KEPCO and Sprott will acquire Canadian Solar's remaining interest in the projects following their commercial operation date.

Canadian Solar developed the three projects and will supply the modules and manage the projects' construction. Horus construction is underway with COD expected in Q2 2020, Tastiota and El Mayo COD is expected in Q1 2021.

Once operational, the projects are expected to generate 900 GWh of clean electricity annually, enough to power 206,000 households and offset 524,000 tons of carbon dioxide emission each year. The electricity generated will be sold under 15-year power purchase agreements for energy and capacity and 20-year for Clean Energy Certificates awarded in November 2017 in the third government auction organized by CENACE.

The transaction marks KEPCO and Sprott's first investment in the solar market in Mexico and the second transaction with Canadian Solar following the acquisition of the Astoria, Astoria 2, and Barren Ridge projects in the U.S. in 2018.

KEPCO's President and CEO JongKap Kim said: "This high-quality solar portfolio is a strategic addition to our international renewable energy holdings and will allow us to further diversify our generation portfolio. We are pleased to be working again with Canadian Solar, an industry-leading developer, and expect further cooperation in the global solar market."

Dr. Shawn Qu, Chairman and CEO of Canadian Solar said: "The investment by KEPCO and Sprott in our portfolio further illustrates the success of Canadian Solar in the Mexican solar energy market. This is the second sale of projects developed by Canadian Solar in Mexico and strengthens our position in this growing electricity market. We are pleased to have partnered again with KEPCO, a global energy leader, and financial investor like Sprott and look forward to continuing our successful collaboration."