Canadian Solar's e-STORAGE to Power 200 MWh Energy Storage Project in Southeastern Australia

Rhea-AI Summary

Canadian Solar's e-STORAGE, part of CSI Solar, has secured a turnkey EPC contract for a 100 MW / 200 MWh energy storage project in Terang, Victoria, Australia. The project, awarded by Fotowatio Renewable Ventures (FRV) Australia, will utilize Canadian Solar's proprietary SolBank 3.0 energy storage solution. Key highlights include:

- 45% increase in capacity and 12% reduction in layout space compared to previous generation
- 30% reduction in auxiliary energy consumption
- Multi-level fire safety system
- Construction to begin in August 2024
- Creation of local jobs during construction and operation

This marks FRV Australia's first standalone energy storage project, strengthening its position in the Australian renewable energy sector.

Positive

• Secured a 100 MW / 200 MWh energy storage project contract in Australia
• Utilizing advanced SolBank 3.0 technology with 45% increased capacity
• 12% reduction in project layout space compared to previous generation
• 30% reduction in auxiliary energy consumption
• Project expected to create local jobs during construction and operation

Negative

• None.

Insights

Energy Storage Expert

The 100 MW / 200 MWh Terang energy storage project marks a significant advancement in Australia's renewable energy landscape. Canadian Solar's e-STORAGE's involvement, utilizing their SolBank 3.0 technology, showcases a leap in energy storage capabilities. The 45% increase in capacity and 12% reduction in layout space compared to previous generations indicate substantial improvements in efficiency and scalability.

The 30% reduction in auxiliary energy consumption through an efficient cooling system is particularly noteworthy, as it addresses a critical challenge in large-scale energy storage - operational costs. The multi-level fire safety system is also crucial, considering the thermal risks associated with large battery installations. These advancements position the project to significantly enhance grid stability and potentially reduce electricity costs for consumers in Victoria.

Financial Analyst

This contract win is a positive indicator for Canadian Solar's e-STORAGE division, potentially boosting the company's revenue and market share in the growing energy storage sector. The project's scale - 100 MW / 200 MWh - is substantial, likely translating to significant revenue. Moreover, the long-term service agreement suggests a steady future income stream.

Investors should note that this project could serve as a reference for future large-scale contracts, potentially opening doors to more opportunities in Australia and globally. The partnership with FRV Australia, backed by OMERS, a major Canadian pension fund, adds credibility and might lead to future collaborations. However, it's important to monitor project execution and profitability margins, as the energy storage market is becoming increasingly competitive.

Renewable Energy Market Analyst

This project signifies Australia's growing commitment to energy storage solutions, important for stabilizing grids with high renewable penetration. As FRV Australia's first standalone energy storage project, it may trigger a trend among other renewable developers to diversify into storage. The August 2024 construction start aligns with Australia's accelerating transition to renewables.

The project's location in Victoria is strategic, as the state is aggressively pursuing renewable energy targets. This 200 MWh addition will significantly boost the state's ability to manage peak loads and integrate more variable renewable sources. The job creation aspect, both during construction and operation, adds a positive socio-economic dimension that could facilitate smoother approvals for future projects in the region.

GUELPH, ON, Aug. 7, 2024 /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 been awarded a turnkey EPC contract for 100 MW / 200 MWh energy storage solutions by Fotowatio Renewable Ventures (FRV) Australia for its Terang energy storage project in Victoria, Australia. FRV Australia, part of Jameel Energy and the Canadian infrastructure fund OMERS, is a leading developer of sustainable energy solutions.

e-STORAGE and FRV Australia have entered into an Energy Storage Supply Agreement and a Long-Term Service Agreement. Construction of the project is scheduled to commence in August 2024.

e-STORAGE will deliver SolBank 3.0, its latest proprietary energy storage solution, for the Terang project. SolBank 3.0 provides over 5 MWh of capacity in a 20-ft container. Compared with the previous generation, SolBank 3.0 offers a 45% increase in capacity and a 12% reduction in the project layout space. In addition, SolBank 3.0's efficient cooling system can reduce auxiliary energy consumption by 30%. The system also includes a multi-level fire detector, alarm, and extinguishing system to mitigate thermal risks. 

Located in Terang, Victoria, the project will be FRV Australia's first standalone energy storage project and is expected to create many jobs during both the construction and operational phases. 

Carlo Frigerio, CEO of FRV Australia, commented: "Building our first large-scale energy storage project is a major milestone for FRV Australia. This project strengthens our place in the renewable energy sector in Australia. It paves the way for future business opportunities and growth in our portfolio".

Colin Parkin, President of e-STORAGE, added: "We really appreciate FRV Australia's trust in e-STORAGE, having chosen us to build this 100 MW / 200 MWh energy storage system in Terang, Australia. Leveraging our advanced SolBank 3.0 technology, this project not only bolsters the grid during peak demand, but also delivers substantial benefits to the local community. We look forward to working with FRV Australia in future".

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.

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. e-STORAGE has shipped close to 5.7 GWh DC of battery energy storage solutions to global markets, including the United States, Canada, the United Kingdom, and China as of March 2024. This significant accomplishment solidifies e-STORAGE's position as a key player in the global energy storage integration industry. Currently, e-STORAGE operates two fully automated, state-of-the-art manufacturing facilities with an annual production capacity of 20 GWh energy storage solutions. For more info, please refer to the Media&PR section of www.csestorage.com and follow the LinkedIn page.

About FRV Australia

FRV was one of the first international solar developers to enter the Australian market and developed its first Australian solar PV project pipeline in 2011 opening the local solar market. FRV was also the first company to deliver a project-financed large-scale solar farm in Australia with the Royalla Solar Farm near Canberra operating since August 2014. To date, the company has developed over 1 GW of PV assets built or under construction across 10 projects. The activities are based in Sydney and the company has a multidisciplinary team of over 80 employees. In October 2021 FRV partnered with OMERS Infrastructure signing an agreement for the sale of 49% of FRV Australia. The partnership with a top tier investor such as OMERS is a strong signal of confidence in the high value of FRV's portfolio of projects and pipeline and it will accelerate the growth plans for the company in Australia. For more information, please visit: frv.com  

About FRV  

FRV, part of Jameel Energy, is a leading global renewable energy development company. In line with our ambition to continue leading the global transition to a more sustainable energy future, FRV has evolved from being just a developer to becoming an independent power producer.  We aim to be the world's leading green energy and infrastructure platform.  For more information, please visit: frv.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 Canadian Solar's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 26, 2024. Although Canadian Solar and Recurrent Energy believe 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 and Recurrent Energy undertake 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

FRV Media inquiries
Guillermo Agulló: guillermo.agullo@frv.com | +34 664 800 663
James Thompson: jathompson@omers.com | +44(0)7443 264 154

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SOURCE Canadian Solar Inc.

FAQ

What is the capacity of the energy storage project Canadian Solar (CSIQ) is building in Australia?

Canadian Solar's e-STORAGE is building a 100 MW / 200 MWh energy storage project in Terang, Victoria, Australia.

When is construction scheduled to begin on Canadian Solar's (CSIQ) Terang energy storage project?

Construction of the Terang energy storage project is scheduled to commence in August 2024.

What improvements does Canadian Solar's (CSIQ) SolBank 3.0 offer compared to its previous generation?

SolBank 3.0 offers a 45% increase in capacity, 12% reduction in project layout space, and 30% reduction in auxiliary energy consumption compared to the previous generation.

Who awarded Canadian Solar (CSIQ) the contract for the Terang energy storage project?

Fotowatio Renewable Ventures (FRV) Australia awarded Canadian Solar's e-STORAGE the turnkey EPC contract for the Terang energy storage project.