Solar Farm in Canada Bought by KKR

Private equity giant KKR has proven itself to be interested in the green agenda once more with the purchase of one of North America’s largest solar farms. KKR is purchasing the solar farm from Starwood Energy Group for an undisclosed amount of money—but the value of the deal (debt plus equity) is rumored to be in the hundreds of millions of dollars.  

“The business case for environmental management has never been stronger,” said KKR co-founder Henry Kravis. “Additionally, in this volatile environment, our commitment to responsible investment—the consideration of environmental, social and governance [ESG] issues in our investment and private equity management processes—is even more critical.”

The deal with Starwood will gain KKR three solar photovoltaic (PV) sites in Sault Ste. Marie, Ontario, which Starwood purchased in 2009. Since then, it has been increasing the capacity for electricity generation. It now has a capacity of 69 megawatts, enough to provide power for about 7,000 homes.

The deal seems particularly appropriate considering push of green initiatives within its portfolio companies in recent years. By purchasing this solar farm, those initiatives will only continue to grow as time goes on.

“One of KKR’s core strengths is driving operational improvements that build business value,” said Dean B Nelson, who is founder and head of KKR Capstone. “By focusing on improving environmental performance across our portfolio and providing a framework to help companies take environmental initiatives to scale, we’re finding new ways to help the portfolio companies save money while simultaneously improving the environment.”

The solar farm is Canada’s second largest PV solar farm and one of just a few large-scale solar farms in North America. Large solar farms generally house thousands of solar panels, laid out over hundreds of acres of land. Energy harvested at this farm has previously been sold to the Ontario Power Authority under a 20-year purchase contract.