Canadian Solar Inc. (the "Company," or "Canadian Solar") (NASDAQ: CSIQ) announced today that three of its solar power projects in Japan, Oita Kitsuki, Gunma Takasaki, and Yamaguchi Hofu, totaling 42 MWp, reached commercial operation in the first quarter of 2023.
All three projects are powered by Canadian Solar bifacial BiHiKu modules, and the energy generated is being purchased by grid operators in their respective areas under Japan's feed-in-tariff program for approximately 19 years at the rates of JPY32 (US$0.24), JPY14.49 (US$0.11), and JPY14.25 (US$0.10) per kWh. These projects together are set to produce circa 53,000 MWh of renewable energy, which will power approximately 15,000 households, equivalent to avoiding approximately 24,000 tons of annual carbon emissions.
"We are delighted to be part of the green transformation that Japan is going through with these additions to our portfolio. Our teams worked closely with the local communities and governments to bring these projects to fruition. Working closely with local community to cultivate a sustainable long-term relationship is one of our ESG sustainable development goals. Canadian Solar's Sustainability Report provides a detailed discussion on our ESG goals, targets and approaches." commented Dr. Shawn Qu, Chairman and CEO of Canadian Solar.
Dr. Qu added, "The Oita Kitsuki project was our first project where we installed a Static Synchronous Compensator (STATCOM), a more challenging power quality requirement that will meaningfully help improve the grid's reliability given the growing number of interconnected solar farms. On the other hand, the Gunma Takasaki and Yamaguchi Hofu projects were awarded FITs via the solar auction held in 2018. Despite market doubts over the feasibility of building projects with JPY14 per kWh at the time of the auction, our team persisted and today has proved the ability to create value and build solar farms that will benefit both local communities as well as investors."
Dr. Qu went on saying, "These projects continue to expand Canadian Solar's strong track record in Japan as we keep developing our business in a sustainable and responsible manner and contributing to Japan's carbon neutrality goal. We now have over 518 MWp of utility-scale projects in operation or under construction, and two partnership platforms in Canadian Solar Infrastructure Fund (TSE: 9284) and Japan Green Infrastructure Fund. Our module manufacturing capability furthers our strengths and presence in Japan, as the brand is one of the most recognized in Japan. Our brand popularity is backed by our unparalleled project development track record, differentiated technology and large manufacturing scale. Today's milestones further solidify Canadian Solar's leadership position as the most integrated clean energy player with significant growth potential in the Japanese market."
