Fengate Real Asset Investments (“Fengate”) announced that it has reached financial close on the acquisition of three operating, fully-contracted solar assets from Canadian Solar Inc. (“CSI”). The solar farms are located in Sault Ste. Marie, Ontario and have a combined capacity of 59.8 MWac, representing Fengate’s largest power investment to date. The acquisition was made on behalf of Fengate’s investors.
“Fengate is very pleased to have reached financial close on this significant transaction,” said George Theodoropoulos, Managing Director of Infrastructure for North America, “This investment delivers on Fengate’s strategy to provide long-term revenue stability for its investors and builds on Fengate’s existing, robust portfolio of renewable energy projects.”
The Sault Ste. Marie solar assets achieved their commercial operations date (“COD”) between 2010 and 2011, giving them more than five years of operational history. They are fully-contracted with the Independent Electricity System Operator (“IESO”) under five, long-term Renewable Energy Standard Offer Program (“RESOP”) Power Purchase Agreements, with an average remaining life of approximately 15 years. CSI will continue to operate the assets on behalf of Fengate as part of a long-term operating and maintenance agreement and will provide on-site technicians who have historical knowledge of the projects.
“The Sault St. Marie solar portfolio is fully-contracted with a strong operating record,” stated Theodoropoulos. “Fengate and its investors will benefit from this new relationship with CSI, an experienced and reputable developer and operator that has extensive knowledge of the solar industry.”
The investment in the Sault Ste. Marie solar assets brings Fengate’s installed ground-mount, utility-scale solar capacity in Ontario to 105 MWdc, strengthening the firm’s infrastructure business in the power sector. Fengate’s renewable energy portfolio includes solar, wind, hydro and biomass projects in Canada, the United States and the United Kingdom.