Sept 22 (Reuters) - Canadian pension fund La Caisse will

buy Australian renewables developer Edify Energy for A$1.1

billion ($724.57 million), the companies said in a joint

statement on Monday.

The deal includes equity for the development of two advanced

solar and battery storage projects, which will supply clean

energy to major offtake partners including mining giant Rio

Tinto and the Australian federal government.

La Caisse, one of the world's largest institutional

investors, reported net assets of C$496 billion ($359.5 billion)

as of the end of June.

The acquisition of Edify provides the Canadian firm with a

substantial foothold in Australia's rapidly growing clean energy

sector - a strategic market it has been targeting for several

years as part of its global expansion efforts.

The Australian government has set its 2035 emissions target

at a reduction of 62%-70% from 2005 levels, a

lower-than-expected figure that will still need substantial

deployment of renewable capacity in its energy mix.

($1 = 1.5181 Australian dollars)

($1 = 1.3799 Canadian dollars)