Canadian Solar Announces Operation of First FIP Projects in Japan and PPA Signing with Toyota Tsusho

Rhea-AI Summary

Canadian Solar announced that its first portfolio of feed-in premium (FIP) photovoltaic projects in Japan began commercial operations on June 1, 2024. The projects include a 1.2 MWp installation in Tsukuba City, Ibaraki Prefecture, and a 1.9 MWp installation in Daisen Town, Tottori Prefecture, both utilizing CS7N-660W bifacial modules. Initially awarded through feed-in tariff (FIT) auctions held in 2020, the projects transitioned to FIP to meet the growing demand for renewable energy. This switch allows the projects to generate additional revenue through Non-Fossil Certificates (NFCs).

Canadian Solar also entered into a 20-year Power Purchase Agreement (PPA) with Toyota Tsusho , securing 100% of the power and NFCs generated. Toyota Tsusho will distribute the power and NFCs to its corporate customers. As of March 31, 2024, Canadian Solar's project development business in Japan totaled 240 MWp and 1.675 GWh for solar and energy storage, respectively.

Positive

• Canadian Solar's first FIP projects in Japan began commercial operations on June 1, 2024.
• Projects include a 1.2 MWp installation in Tsukuba City and a 1.9 MWp installation in Daisen Town.
• Both projects use advanced CS7N-660W bifacial modules.
• Switching from FIT to FIP in response to rising renewable energy demand.
• FIP projects generate additional revenue through Non-Fossil Certificates (NFCs).
• Signed a 20-year Power Purchase Agreement (PPA) with Toyota Tsusho
• Toyota Tsusho secures 100% of the power and NFCs generated.
• As of March 31, 2024, project development in Japan totaled 240 MWp for solar and 1.675 GWh for energy storage.

Negative

• None.

GUELPH, ON, June 17, 2024 /PRNewswire/ -- Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ) announced today that its first portfolio of Japan's feed-in premium (FIP) PV projects began commercial operation on June 1, 2024.

The projects that have reached commercial operation include a 1.2 MWp project in Tsukuba City, Ibaraki Prefecture and a 1.9 MWp project in Daisen Town, Tottori Prefecture. Both projects are powered by CS7N-660W bifacial modules. Initially awarded a feed-in tariff (FIT) through auctions held in 2020, the Company decided to switch the projects from FIT to FIP in response to the rising demand for renewable energy. FIP-awarded projects will generate additional revenue through Non-Fossil Certificates (NFCs).

By entering into a 20-year Power Purchase Agreement (PPA) with the Company, Toyota Tsusho Corporation ("Toyota Tsusho") secures 100% of the PV power, together with the NFCs, generated by the project. These NFCs will be transferred to Toyota Tsusho, a member of the Toyota Group and an electricity retailer, who will then provide the power and NFCs to its corporate customers.  

Ryota Yamada, General Manager of Canadian Solar's Japan Energy Group, commented, "Since launching our Japan PV development business in 2012, we have focused on FIT, as many of our investors preferred the stable cash flows backed by government programs. Today, enterprises are increasingly demanding clean energy to power their businesses. As of March 31, 2024, our project development business in Japan totaled 240 MWp and 1.675 GWh for solar and energy storage, respectively. We are honored to sign our first private PPA with Toyota Tsusho, a key member of the Toyota Group. This PPA marks the beginning of our commitment to support Japanese corporations in meeting their clean energy needs for operations both in Japan and globally."

About Canadian Solar Inc.

Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules, provider of solar energy and battery energy storage solutions, and developer of utility-scale solar power and battery energy storage projects with a geographically diversified pipeline in various stages of development. Over the past 23 years, Canadian Solar has successfully delivered over 125 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built, and connected over 10 GWp of solar power projects and 3.3 GWh of battery energy storage projects across the world. Currently, the Company has over 1.2 GWp of solar power projects in operation, 6.5 GWp of projects under construction or in backlog (late-stage), and an additional 19.8 GWp of projects in advanced and early-stage pipeline. In addition, the Company has 600 MWh of battery energy storage projects in operation and a total battery energy storage project development pipeline of around 56 GWh, including approximately 4.3 GWh under construction or in backlog, and an additional 51.6 GWh at advanced and early-stage development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business, regulatory and economic conditions and the state of the solar and battery storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to the COVID-19 pandemic; supply chain disruptions; governmental support for the deployment of solar power; future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets, such as Japan, the U.S., China, Brazil and Europe; changes in effective tax rates; changes in customer order patterns; changes in product mix; changes in corporate responsibility, especially environmental, social and governance ("ESG") requirements; capacity utilization; level of competition; pricing pressure and declines in or failure to timely adjust average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; delays in the completion of project sales; continued success in technological innovations and delivery of products with the features that customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange and inflation rate fluctuations; litigation and other risks as described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 26, 2024. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.

Canadian Solar Inc. Investor Relations Contact

Wina Huang
Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com

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SOURCE Canadian Solar Inc.

FAQ

When did Canadian Solar's first FIP projects in Japan begin commercial operations?

June 1, 2024.

What are the capacities of Canadian Solar's FIP projects in Japan?

1.2 MWp in Tsukuba City and 1.9 MWp in Daisen Town.

What type of modules are used in Canadian Solar's FIP projects?

CS7N-660W bifacial modules.

Why did Canadian Solar switch its projects from FIT to FIP?

To meet the rising demand for renewable energy.

What additional revenue source do FIP projects generate?

Non-Fossil Certificates (NFCs).

Which company signed a 20-year PPA with Canadian Solar?

Toyota Tsusho

What does Toyota Tsusho secure through the PPA with Canadian Solar?

100% of the power and NFCs generated by the projects.

What is Canadian Solar's total project development capacity in Japan as of March 31, 2024?

240 MWp for solar and 1.675 GWh for energy storage.