Shenzhen Firm to acquire three U.S. solar farms

Shenzhen Energy will buy three California solar power plants for approximately US$232 million from Canadian Solar, as a way to diversify their business with power plant construction.

The company will apply for overseas loans of US$124 million through its American subsidiary and pay US$116 million from its own funds to pay for the remainder and relevant transaction expenses.

Recurrent Energy, the solar plant construction associate of Canadian Solar, will be in charge as bond arranger in the transaction. 

The transaction involves the acquisition of a 100% stake in three solar assets:

• The 2.2 MW ground mounted solar system named Lemoore, located in Kings county, California. A US$5.55m worth construction loan was necessary to carry out all the related work.
• The 200 MW Tranquillity solar photovoltaic project, covering an area of 1,900 acres in Fresno County, is expected to generate enough clean solar energy to power approximately 55,000 homes. The facility has been built on lands that are retired from agricultural production.
• The 150 MW Rosamond solar photovoltaic project, located in Kern county, California. The array it will occupy approximately 1,175 acres of private land. The array is expected to produce roughly 488,000 MWh/year.

The facilities have started commercial operations last year and have signed long-term contracts to supply power to local buyers.

Shenzhen Energy said in a statement:

“Based on the company’s latest five-year plan, it will follow a two-pronged strategy of helping in the transformation to low-carbon energy suppliers. Making acquisitions that can increase the company’s ratio of clean energy production is in line with the company’s development plan.”