TransCanada enters solar generation market

TransCanada Corp (Toronto: TRP.TSX) announced it will purchase nine Ontario solar projects from Canadian Solar Solutions, with a combined capacity of 86MW for around CAD470m. The projects have 20-year power purchase agreements with the Ontario Power Authority.

“The addition of these solar projects allows us to expand and add to our diverse power generating portfolio where a third of the power we own, or have interests in, comes from alternative or renewable energy sources,” said Russ Girling, TransCanada’s president and chief CEO. “Upon close of this acquisition, this low-risk investment is expected to be immediately accretive to earnings and cash flow.”

Under the terms of the agreement, Canadian Solar Solutions will develop and built each of the nine solar projects using its photovoltaic panels. Following the start of commercial operation and the meeting of certain milestones, TransCanada will buy each project.

Subject to regulatory approvals, the projects are expected to enter service between late-2012 and mid-2013.

The projects will complement TransCanada existing operations in Ontario, where it is the largest independent power producers in the province.