SWITCH Power Corporation Announces Agreement To Sell Stake in PACE Canada LP

PVTIME – SWITCH Power Corporation (“SWITCH” or “the Corporation”) announced today that it has entered into a definitive agreement with Solarnet Investment Canada Ltd. (“Solarnet”) whereby Solarnet will acquire the Corporation’s 50 per cent ownership of PACE Canada LP (“PACE Canada”).

PACE Canada owns four solar PV development projects in Alberta with a total capacity of 75ac megawatts. SWITCH and its PACE Canada partner, Pathfinder Clean Energy (“Pathfinder”), have been developing the Joffre, Youngstown, Hanna, and Caroline solar projects since 2018. The Joffre and Youngstown projects recently obtained Alberta Utilities Commission power plant approval, with procurement and construction expected to start in spring 2022. While the four solar projects have attractive fundamentals, greenfield project development is not part of SWITCH’s electricity-as-a-service strategy. In addition, current market conditions have provided opportunities for developers to monetize advanced development projects. While the terms of the transaction with Solarnet were not disclosed, the sale price received by SWITCH represents a meaningful return on development spend. Pathfinder will remain a 50 per cent unitholder in PACE Canada and will continue to support the development of these projects with its new partner.

Trevor White, CEO of SWITCH Power, said “This is an accretive transaction for SWITCH and its shareholders, and one that demonstrates our ability to successfully develop a portfolio of projects, creating value and return on development dollars. We are proud of these projects we co-developed with Pathfinder. However, the growing demand for solar projects in Alberta provided SWITCH a unique opportunity to divest this portfolio and recycle capital into our core business. With Solarnet, Pathfinder brings a credible partner to PACE Canada and together they will advance these projects while ensuring the commitments PACE Canada made to stakeholders are maintained.”