As Canadian Solar expands its solar energy presence in Brazil, these two contracts bring its total solar energy power to 1.6 gigawatts.
Canadian Solar (NASDAQ:CSIQ) has been awarded a combined 190.5 megawatt (MW) power solar projects in the State of Ceara and the State of Pernambuco, Brazil. The two projects fall under 20-year power purchase plans that are planned to begin construction in 2021 and 2022, respectively, This marks the first entry of solar energy projects to be included within Brazil’s A-6 energy auction.
As quoted in the press release:
Canadian Solar will develop and build the 152.4 MWp Gameleira project in the State of Ceará and the 38.1 MWp Luiz Gonzaga Project located in the State of Pernambuco. The construction is expected to start in Q3 2021 and Q1 2022 respectively, and the projects will both reach commercial operation before January 2023, two years earlier than the date required by the government. Once in operation, the two solar power plants will generate approximately 433 GWh of electricity annually. 30% of the electricity generated by the plants will be purchased by a pool of distribution companies under two 20-year power purchase agreements (PPAs), with an average contracted price of 84.38 BRL/MWh, or approximately US$22.32/MWh. The rest of the electricity will be purchased under long-term private PPAs which are under negotiation.
Dr. Shawn Qu, Chief Executive Officer and Chairman of Canadian Solar, commented, “We are proud to be the only company that has been successful in winning projects in all seven federal energy auctions held to date in Brazil. This auction win further strengthens our leading position in the Brazilian solar market where we have been awarded accumulatively around 1.6 GWp of PPAs.”