The terms of the transaction were not disclosed, but KKR said: “When it comes to infrastructure, renewable energy is one of our top priorities; not only is the sector a critical part of energy supply diversity, but these investments can also provide investors with highly predictable long-term income streams.”

Located in Sault Ste Marie, Ontario, the three SSM Solar projects have a total capacity of 69MWdc and 60MWac, representing one of the largest PV facilities in North America and the second largest in Canada. SSM Solar is fully contracted to sell its energy output to the Ontario Power Authority (OPA) under 20-year power purchase agreements entered under the authority’s Renewable Energy Standard Offer Program (RESOP). SSM Solar powers approximately 7000 households. 

“Ontario has been at the forefront of encouraging new development to bring additional renewables capacity online, and with this acquisition, we are playing a meaningful role in the growth of renewables in the province,” said Raj Agrawal, KKR’s Head of North American Infrastructure.

“When it comes to infrastructure, renewable energy is one of our top priorities; not only is the sector a critical part of energy supply diversity, but these investments can also provide investors with highly predictable long-term income streams.”

Overall operations and management of the solar projects will continue to be handled by EDF Renewable Energy under three separate long term operations and maintenance agreements.

The Ontario solar market is one of the fastest growing utility scale solar markets globally. Starting in 2006, Ontario put in place specific programs to encourage development of renewables capacity, including OPA RESOP and FiT programmes, which offer economic incentives in the form of long-term power purchase agreements. These programmes also standardise environmental approvals and offer priority access to renewables to connect the electric grid.