TransCanada buys Ont. solar projects

TransCanada Corp. is spending $470 million to buy into the Ontario solar market.

The pipeline and energy company said Tuesday it has agreed to buy nine Ontario solar projects from Canadian Solar Solutions Inc.

The projects have a combined capacity of 86 megawatts and have 20-year power sales agreements with the Ontario Power Authority.

Calling it a "low-risk investment," Russ Girling, president and CEO, said it will add to profit as TransCanada takes over the projects after they are completed and begin operation, expected between late next year and mid 2013.

A third of the power sources the company owns or has an interest in are alternative or renewables, he said in a news release.

Canadian Solar said the photovoltaic panels for the projects will be made at its plant in Guelph, Ont. It will also get  construction finance, and will provide provide turnkey engineering, procurement and construction services.

The TransCanada deal "is a true achievement for the solar industry in Canada, and an important milestone for Canadian Solar," said  Shawn Qu, chairman and CEO of Canadian Solar.

TransCanada's renewable portfolio includes the largest wind farm in Canada, and the largest wind farm in New England. Its has hydro electric plants in New England, and is part owner of the Bruce nuclear plant in Ontario.

Canadian Solar is one of the world's largest solar companies.

TransCanada stock was up 51 cents to $43.95 in mid-afternoon trading on the TSX. Canadian Solar was up 76 cents to $2.97 US in NASDAQ trading.