Recurrent Energy Signs 300 MW Power Purchase Agreement with Major U.S. Tech Company in Spain

Rhea-AI Summary

Recurrent Energy, a Canadian Solar subsidiary, has signed a 10-year Power Purchase Agreement (PPA) with a major U.S. technology company for renewable energy from the Tordesillas solar PV project in Spain. The project, located in Valladolid, has an installed capacity of 300 MWp and is expected to be operational by 2026.

The project will generate approximately 620 GWh per year, powering 188,000 households and avoiding 161,000 tons of CO2 equivalent annually. Recurrent Energy plans to own and operate the facility upon completion. The company currently maintains a development pipeline in Spain exceeding 2 GW of solar projects and 60 MWh of battery energy storage.

Positive

• Secured 10-year PPA with major U.S. tech company
• 300 MWp solar project to be operational by 2026
• Project will generate 620 GWh annually
• Strong development pipeline in Spain with 2 GW solar and 60 MWh storage projects

Negative

• None.

Insights

Financial Analyst

This 300 MW PPA with a major tech company represents a significant win for Canadian Solar's subsidiary Recurrent Energy, particularly in the growing European renewable energy market. The 10-year agreement provides stable, long-term revenue visibility and strengthens CSIQ's position in Spain, where they already have a robust 2 GW development pipeline. Spain's favorable renewable energy policies and high solar irradiance make it an attractive market for solar development. The project's scale and the counterparty's creditworthiness as a major U.S. tech company reduce revenue risk. While specific financial terms weren't disclosed, corporate PPAs typically provide predictable cash flows that support project financing and long-term profitability. This deal advances CSIQ's strategy to expand its global IPP business, which generates higher margins compared to module sales.

Energy Market Analyst

The 300 MW Tordesillas project highlights Spain's growing attraction as a key market for utility-scale solar development. With expected annual generation of 620 GWh, this project demonstrates the increasing scale of corporate renewable energy procurement in Europe. The timing aligns with Spain's aggressive renewable energy targets and the broader EU push for energy independence. Corporate PPAs have become a important driver of renewable energy growth, offering developers like Recurrent Energy the certainty needed to secure project financing. The project's size and the involvement of a major tech company validate Spain's competitive position in the European renewable energy landscape. This deal also reflects the growing trend of tech companies directly procuring renewable energy to meet their sustainability goals.

KITCHENER, ON, Dec. 10, 2024 /PRNewswire/ -- Recurrent Energy, a subsidiary of Canadian Solar Inc. ("Canadian Solar") (NASDAQ: CSIQ) and a global developer, owner, and operator of solar and energy storage assets, announced today the signing of a 10-year Power Purchase Agreement (PPA) with a major U.S.-based technology company.

Under this agreement, the counterparty will procure renewable energy from a Recurrent Energy solar PV project located in Valladolid, in the northwestern Spanish autonomous community of Castilla y León. The Tordesillas solar PV project has an installed capacity of 300 MWp (peak) and is expected to be operational by 2026. Following energization, Recurrent Energy plans to own and operate the solar project.

Ismael Guerrero, CEO of Recurrent Energy, said, "We are very pleased to continue to support leading technology companies in their commitments to achieve net zero carbon emissions. The trust placed in us reflects Recurrent Energy's proven expertise in executing large-scale projects for major global customers. This PPA demonstrates both companies' dedication to combating climate change through cost-competitive renewable energy investments."

The Tordesillas project will strengthen Spain's position as a renewable energy leader and help the country meet its decarbonization targets. The project is expected to generate approximately 620 GWh per year, the equivalent of powering 188,000 households and avoiding 161,000 tons of CO2 equivalent annually.

Recurrent Energy continues to expand its portfolio of solar PV and energy storage projects in development across all regions of the world. In Spain, Recurrent Energy has a project development pipeline of more than 2 GW of solar projects and 60 MWh of battery energy storage.

About Recurrent Energy:

Recurrent Energy is one of the world's largest and most geographically diversified utility-scale solar and energy storage project development, ownership and operations platforms. With an industry-leading team of in-house energy experts, Recurrent Energy serves as Canadian Solar's global development and power services business. To date, Recurrent Energy has successfully developed, built, and connected 11 GWp of solar projects and 3.7 GWh of energy storage projects across six continents. As of September 30, 2024, its project development pipeline includes over 26 GWp of solar and 66 GWh of energy storage capacity.

About Canadian Solar:

Canadian Solar is one of the world's largest solar technology and renewable energy companies. Founded in 2001 and headquartered in Kitchener, Ontario, 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 around 9 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.

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

Recurrent Energy Media Inquiries
Inés Arrimadas
Recurrent Energy
comm_global@recurrentenergy.com

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SOURCE Canadian Solar Inc.

FAQ

What is the capacity of Recurrent Energy's Tordesillas solar project in Spain (CSIQ)?

The Tordesillas solar PV project has an installed capacity of 300 MWp (peak) and is located in Valladolid, Spain.

When will Recurrent Energy's Tordesillas solar project (CSIQ) become operational?

The Tordesillas solar project is expected to become operational by 2026.

How much renewable energy will the Tordesillas project (CSIQ) generate annually?

The project will generate approximately 620 GWh per year, powering 188,000 households and avoiding 161,000 tons of CO2 equivalent annually.

What is Recurrent Energy's current development pipeline in Spain (CSIQ)?

Recurrent Energy has a project development pipeline of more than 2 GW of solar projects and 60 MWh of battery energy storage in Spain.