Southern Power, a subsidiary of US power utility Southern Company, is acquiring controlling stake in Tranquility Solar Power Project, California.
Recurrent energy, the wholly-owned subsidiary of solar power company Canadian Solar, is developing the project.
According to the ongoing deal, Southern Power is to acquire about 51 percent stakes in the 200-megawatt Tranquility project.
Canadian Solar will retain 49 percent ownership and contribute its share of the investment required to complete the construction of the solar park.
The company has fully financed the project through a construction and back-leveraged loan facility with a syndicate of six banks, a statement says.
Tranquillity project is coming up over 1,900 acres in Fresno County. It is expected to go into commercial operation in the fourth quarter of 2016.
Signal Energy Constructors is the EPC contractor for the project.
According to the statement, the project is expected to generate adequate clean solar energy to power about 55,000 homes.
“The electricity and associated renewable energy credits (RECs) generated by the facility will be sold to Southern California Edison under a 15-year power purchase agreement,” the statement adds.
Ajith Kumar S