Renewable energy company Boralex Inc. is entering the solar energy business by beginning construction this week of a solar park in France.
Construction of the 4.5 megawatt solar facility in southern France is set to begin on Saturday and start operating in May.
The Montreal-based company has partnered with Q-Cells, a world leader in the photovoltaic industry based in Germany.
The project has obtained all regulatory approvals and financing.
He said the company plans to expand the solar business, particularly up to 40 megawatts in France.
Under the turnkey agreement with Q-Cells Group, engineers of Q-Cells French subsidiary are responsible for the engineering, construction and maintenance of the facility. The solar park will use Q-Cells photovoltaic panels and cells.
The solar park will be located on land adjacent to Boralex's Avignonet-Lauragais wind farm.
The solar park has a 20-year contract with France's electrical utility. It obtained financing for more than 85 per cent of its euro14.6 million investment from the Landesbank Baden-Wurttemberg bank.
Desjardins Securities analyst Pierre Lacroix said he didn't expect Boralex's shares would surge because the project has previously disclosed it was undertaking a small-scale project in France.
Boralex, which recently acquired Boralex Power Fund, operates 41 power stations with a total installed capacity of 650 megawatts in Canada, northeastern U.S. and France. It employs 300 people.
It also has projects under development, including wind farms in Ontario and Quebec, that will add almost 300 MW of power.
On the Toronto Stock Exchange, its shares lost one cent at C$8.29 in morning trading.
