Southern Company is making significant strides forward toward growth and expansion this year. Just last week the utility company announced its $12 billion acquisition of natural gas provider AGL Resources Inc. Now Southern Company has acquired a controlling interest in the 200-megawatt (MW) Tranquility Solar Power Project currently under construction in Fresno, California.
The Tranquility project is being developed by Recurrent Energy, a wholly owned subsidiary of massive solar company Canadian Solar Inc, with further engineering, construction and procurement services provided through Signal Energy Constructors. According to a press release from Canadian Solar, the Tranquility project will cover 1,900 acres of land in Fresno County and will ultimately generate enough solar energy to power 55,000 homes—the project’s owners will sell this electricity along with renewable energy credits to Southern California Edison as part of a 15-year power purchase agreement.
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"The Tranquillity project is an attractive opportunity for investors, providing long term stable cash flows," said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, in the press release announcing Southern Company’s investment. "This transaction is another example of solar power's move into the mainstream energy mix, and it shows our broader team's ability to attract top notch investors to finance our high-quality projects."
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The deal at hand sees Southern Company acquiring a 51 percent controlling interest in the Tranquility project for an as of yet undisclosed amount. Meanwhile Recurrent Energy parent company Canadian Solar will retain the remaining 49 percent ownership.