Canadian Solar sells Japanese solar power plant for $205m

It also proceeded to start on two solar PV plants in the Fukuoka and Ibaraki prefectures.Canadian Solar completed the sale of Yamaguchi Shin Mine, a 56.3MWp operational solar power plant in the Yamaguchi Prefecture in Japan, according to an announcement.Hana Financial Investment, a subsidiary of Hana Financial Group, acquired the solar power plant for an enterprise value of approximately $205m (JPY22.3b). 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. at the rate of $0.32(JPY 36) per kWh 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 five-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.Two new solar plantsIn a separate announcement, Canadian Solar has started the construction of two solar PV power projects in Japan. The first is a 13.6MWp project in the Ibaraki Prefecture which is expected to generate approximately 15,901MWh each year. The electricity will be purchased by Tokyo Electric Power Co., Inc. (TEPCO) under a 20-year feed-in-tariff (FIT) contract at the rate of $0.29 (JPY32) per kWh. The company expects the project to reach commercial operation by mid-2021.The second project is a 13.0 MWp project in Fukuoka Prefecture. The plant is expected to generate approximately 15,250 MWh of solar energy each year, which will be purchased by Kyushu Electric Power Co., Inc. under a 20-year FIT contract at the rate of $0.33 (JPY36) per kWh. The project is also expected to reach commercial operation by mid-2021.