28 Sep 2023
Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ) announced that it has completed the sale of its 17.5 MWp Hiroshima Suzuhari operational project located in Hiroshima prefecture, to a private Japanese fund. The project had been owned by the Japan Green Infrastructure Fund("JGIF") since 2021 and was financed through the issuance of a Green Project Bond with an investment grade rating. Importantly, it was certified with the highest Green 1 rating under the Japanese Green Bond guidelines. With this transaction, all projects acquired by JGIF will have been successfully sold in accordance with its business plan.
Canadian Solar expects to recognize the revenue from the transaction in the third quarter of 2023. Recurrent Energy's local subsidiary will continue to provide long-term operations and maintenance services for the plant after the transaction.
The Hiroshima Suzuhari solar project started commercial operation in Q2 2022. The project is Recurrent Energy's first project that was awarded feed-in-tariff ("FIT") through the inaugural solar auction program launched in Japan in Q4 2017. The project is powered with over 42,500 Canadian Solar high efficiency HiKu modules and the clean energy generated is being purchased by the Chugoku Electric Power Transmission & Distribution Co., Inc. at JPY17.97 (US$0.12)per kWh under Japan's FIT program for the remaining tenor of 17.5 years.
Ismael Guerrero, President and CEO of Recurrent Energy commented, "We are excited to announce the completion of the sale of our Hiroshima Suzuhari project through JGIF. Since we applied for Japan's first FIT auction back in 2017, our team demonstrated resilience and professionalism overcoming various challenges at different stages of the development cycle. The dedication by everyone in the team allowed us to develop the project from a piece of abandoned land to what it is today. This is another example of Recurrent Energy's strong execution capabilities in the global project development business. We will strive to build more PV and storage projects all over Japan, in order to deliver clean and sustainable energy to the country."
Canadian Solar | www.canadiansolar.com