Canadian Solar's e-STORAGE to Deliver 2 GWh of Energy Storage Systems in the UK for Copenhagen Infrastructure Partners

Rhea-AI Summary

Canadian Solar's e-STORAGE division has secured contracts with Copenhagen Infrastructure Partners (CIP) to deliver 2 GWh DC of battery energy storage systems for two major projects in Scotland. The projects include the 1 GWh DC Coalburn 2 Project in South Lanarkshire and the 1 GWh DC Devilla Project near Edinburgh, both scheduled to begin construction in 2027.

e-STORAGE will supply approximately 450 SolBank 3.0 battery containers and provide long-term facility performance and operational management services. The projects will have a two-hour energy storage dispatch capability and can power around 250,000 homes for a full day. Together, they are expected to reduce approximately 4.57 million metric tons of CO2 emissions during their lifespan.

The initiatives aim to stabilize the grid, support offshore wind generation, and contribute to the UK's clean energy transition goals. Environmental measures including tree planting and habitat creation are also planned to enhance biodiversity.

Positive

• Secured major contract for 2 GWh DC battery storage systems in Scotland
• Long-term service agreement included for facility performance and operations
• Projects will support 250,000 homes with daily power needs
• Expected to reduce 4.57 million metric tons of CO2 emissions

Negative

• Construction not starting until 2027, indicating delayed revenue recognition

KITCHENER, ON, Jan. 8, 2025 /PRNewswire/ -- Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ) today announced that e-STORAGE, which is part of the Company's majority-owned subsidiary CSI Solar Co., Ltd. ("CSI Solar"), has signed contracts with Copenhagen Infrastructure Partners (CIP), through its flagship fund CI IV. The contracts cover the delivery of 2 GWh DC of battery energy storage systems for two landmark projects in Scotland: the 1 GWh DC Coalburn 2 Project, situated in South Lanarkshire, adjacent to the existing Coalburn 1 Project, and the 1 GWh DC Devilla Project, located in Fife near Kincardine, north of Edinburgh. Each site will have a two-hour energy storage dispatch capability. Coalburn 2 and Devilla are both scheduled to start construction in 2027.

e-STORAGE, a tier 1 global provider of energy storage solutions, will supply and integrate approximately 450 SolBank 3.0 battery containers during the construction of both projects. e-STORAGE will also support the long-term facility performance and operational management of the projects under a long-term service agreement with CIP. The 2 GWh capacity delivered by the projects will provide enough energy to power approximately 250,000 homes for a full day, based on average UK electricity consumption. These transformative initiatives will play a pivotal role in stabilizing the grid, reducing carbon emissions, and driving the UK's clean energy transition.

Coalburn 2 and Devilla are expected to collectively displace approximately 4.57 million metric tons of CO₂ emissions during their lifespan, making a significant contribution to combating climate change. The projects will enable the efficient transmission of renewable energy across the country, support offshore wind generation, and include environmental measures such as tree planting and habitat creation to enhance biodiversity.

Nischal Agarwal, partner at CIP, commented, "CIP's latest investments in Scottish battery energy storage will support the UK's pursuit of a clean power system by 2030 and delivering a net zero carbon economy by 2050. Well located battery storage, such as our Coalburn and Devilla projects enhance energy security, provide the grid with much-needed flexibility and enable low-cost renewables to be deployed faster."

Colin Parkin, President of e-STORAGE, commented, "We are thrilled to continue our partnership with Copenhagen Infrastructure Partners, as they solidify their position as one of the UK's largest battery storage investors, leading the way with these groundbreaking projects, the largest of their kind in Europe. The Coalburn 2 and Devilla batteries represent a transformative energy milestone for Scotland and the UK. e-STORAGE will be delivering 2 GWh of energy storage capacity, which will enhance grid stability, reduce network constraints, and unlock the potential of offshore wind energy."

About Canadian Solar Inc.

Canadian Solar is one of the world's largest solar technology and renewable energy companies. Founded in 2001 and headquartered in Ontario, Canada, the Company is a leading manufacturer of solar photovoltaic modules; provider of solar energy and battery energy storage solutions; and developer, owner, and operator of utility-scale solar power and battery energy storage projects. Over the past 23 years, Canadian Solar has successfully delivered around 142 GW of premium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar has shipped over 8 GWh of battery energy storage solutions to global markets as of September 30, 2024, boasting a US$3.2 billion contracted backlog as of November 30, 2024. Since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 11 GWp of solar power projects and 3.7 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 26 GWp of solar and 66 GWh of battery energy storage capacity in various stages of 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.

About e-STORAGE

e-STORAGE is a subsidiary of Canadian Solar and a leading company specializing in designing, manufacturing, and integrating battery energy storage systems for utility-scale applications. e-STORAGE offers proprietary battery energy storage solutions, comprehensive EPC services, and innovative solutions aimed at improving grid operations. Currently, e-STORAGE operates two fully automated, state-of-the-art manufacturing facilities with an annual battery production capacity of 20 GWh. For more info, please refer to the Media&PR section of www.csestorage.com and follow our LinkedIn page.

About Copenhagen Infrastructure Partners

Founded in 2012, Copenhagen Infrastructure Partners P/S (CIP) today is the world's largest dedicated fund manager within greenfield renewable energy investments and a global leader in offshore wind. The funds managed by CIP focus on investments in offshore and onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity, storage, advanced bioenergy, and Power-to-X. In the UK, CIP is investing in over 30 GW of renewable energy infrastructure, representing over £15 Billion of future investment potential.

CIP manages 12 funds and has to date raised approximately EUR 31 billion for investments in energy and associated infrastructure from more than 180 international institutional investors. CIP has approximately 500 employees and 14 offices around the world. For more information, visit www.cip.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 power and battery energy storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to global pandemics; supply chain disruptions; governmental support for the deployment of solar power and battery energy storage; future available supplies of silicon, solar wafers and lithium cells; 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 China, the U.S., Europe, Brazil and Japan; 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; the pipeline of projects and timelines related to them; the ability of the parties to optimize value of that pipeline; 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

e-STORAGE MEDIA INQUIRIES
Simona Marginean
e-STORAGE Marketing Manager
simona.marginean@csestorage.com

CIP MEDIA CONTACTS
Alex Murley
CIP Head of Government Affairs & Communications (UK & Ireland)
Email: almu@cisc.dk  

Oliver Routhe Skov
CIP Head of Media Relations
Email: orsk@cip.com

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SOURCE Canadian Solar Inc.

FAQ

What is the size of Canadian Solar's (CSIQ) new energy storage contract in the UK?

Canadian Solar's e-STORAGE has secured contracts to deliver 2 GWh DC of battery energy storage systems across two projects in Scotland.

When will CSIQ begin construction of the Coalburn 2 and Devilla storage projects?

Both the Coalburn 2 and Devilla projects are scheduled to begin construction in 2027.

How many homes will CSIQ's new UK storage projects power?

The 2 GWh capacity projects will provide enough energy to power approximately 250,000 homes for a full day, based on average UK electricity consumption.

What is the environmental impact of CSIQ's new UK storage projects?

The projects are expected to collectively displace approximately 4.57 million metric tons of CO2 emissions during their lifespan.

How many SolBank 3.0 battery containers will CSIQ supply for the UK projects?

e-STORAGE will supply and integrate approximately 450 SolBank 3.0 battery containers during the construction of both projects.