GUELPH, ON, May 24, 2021 /PRNewswire/ -- Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today announced it has signed a long-term power purchase agreement (PPA) with Axpo Italia for the purchase of energy produced by two solar power plants under development totaling 12 MWp near Ragusa and Enna, in Sicily, Italy.
Axpo Italia is the third largest operator in the free energy market in Italy. Under the agreement, Axpo Italia will purchase renewable energy and their associated guarantees of origin from the two solar plants. The agreement includes a guaranteed fixed electricity price for ten years starting from April 2022 and will provide stable cash flows to the projects.
Construction of the two solar power plants will begin by the end of 2021 and will use Canadian Solar's high-efficiency modules. Once the projects are commissioned, they will have an overall capacity of 12 MWp with an estimated annual production of approximately 22 GWh. The electricity produced can power approximately 8,460 households, equivalent to displacing 6,860 mt of CO2-equivalent emissions or taking 5,300 cars off the road.
"We are pleased to sign this PPA with Axpo Italia as we execute on the first of many more collaboration opportunities in Italy," said Dr. Shawn Qu, Chairman and CEO of Canadian Solar. "The growth of renewable energy sources in Italy is critical to achieving the country's clean energy transition objectives. We are honored to work with Axpo with whom we share the same vision on the energy transition, and work together to meet renewable energy goals by utilizing our solar technology and development expertise. Italy is also one of Canadian Solar's key markets in the Europe, Middle East and Africa, or EMEA region, as we execute on a solar pipeline in excess of 1.3 GWp in the country."
This PPA is one of the first private PPAs signed in the Italian market. It is also part of a broader framework agreement signed between Canadian Solar and Axpo Italia in November 2020 for the execution of up to 300 MWp of similar PPAs in the country.
"Over the past years, renewable energy sources have often been associated with the concept of state incentives, which is no longer the case today," commented Simone Demarchi, CEO at Axpo Italia. "Agreements such as long-term PPAs finally allow the market and all the actors involved to definitively exit the incentive logic, making the plants financially sustainable, programmable from the development point of view and advantageous for all the stakeholders involved. The hope is that this trend, which is already well established in Europe, will soon achieve stability in Italy as well. Today we find in Canadian Solar a new partner able to understand and appreciate the potential and advantages of this tool."
About Axpo Italia
For over 100 years, the Axpo Group has been producing and supplying energy with the expertise of a leader in energy trading to over 3 million people and thousands of companies. Founded in Switzerland in 1914, Axpo is now present in over 30 countries in Europe, the United States and Asia and employs 5,000 people who combine expertise in sustainable electricity generation and the ability to innovate through research. Sustainability and reliability are Axpo's founding values for the development of innovative solutions and services along the entire energy supply chain, from production to supply for the end customer. Axpo Italia, part of the Axpo Group, was founded in 2000 during the transition to the free market and is today one of the major players with a presence along the entire energy chain, third in Italy in the free market. Axpo Italia brings the international experience of the Axpo group into the local market, creating value for the entire Italian energy supply chain and is convinced of the fundamental role played by the supply of energy in determining the competitiveness of a company. Axpo has been involved for years in the development of green solutions tailored to companies that decide to reduce their impact on the environment and in the evolution of city electric mobility. Through climate-friendly electricity production and the provision of innovative services such as PPAs (Power Purchase Agreements), Axpo plays a key role in achieving the Sustainable Development Goals (SDGs). Axpo Italia has its headquarters in Genoa, and commercial and representative offices in Milan and Rome.
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 storage solutions, and developer of utility-scale solar power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 20 years, Canadian Solar has successfully delivered over 53 GW of premium-quality, solar photovoltaic modules to customers in over 150 countries. Likewise, since entering the solar project development business in 2010, Canadian Solar has developed, built and connected over 5.7 GWp in over 20 countries across the world. Currently, the Company has around 500 MWp of projects in operation, nearly 6 GWp of projects under construction or in backlog (late-stage), and an additional 15 GWp of projects in pipeline (mid- to early- stage). Additionally, Canadian Solar has 1.2 GWh of battery storage projects under construction, and nearly 16 GWh of battery storage projects in backlog or pipeline. 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.
Canadian Solar's 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 and economic conditions and the state of the solar industry; 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., India and China; changes in customer order patterns; changes in product mix; capacity utilization; level of competition; pricing pressure and declines in 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; delays in the process of qualifying to list the CSI Solar subsidiary in the PRC; continued success in technological innovations and delivery of products with the features customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange rate fluctuations; litigation and other risks as described in the Company's SEC filings, including its annual report on Form 20-F filed on April 19, 2021. Although the Company believes 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 undertakes no duty to update such information, except as required under applicable law.
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