Canadian Solar Announces Operation of 100 MWp Solar Project in Japan

GUELPH, ON, Nov. 17, 2022 /PRNewswire/ -- Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ) announced today that its Japan flagship mega-project, the 100 MWp Azuma Kofuji solar project located in the Fukushima Prefecture, recently reached commercial operation.

The Azuma Kofuji project is Canadian Solar's largest project in Japan and Fukushima Prefecture's largest operational solar project to date. The project is powered with Canadian Solar high efficiency HiKu modules and the energy generated is being purchased by the Tohoku Electric Power Company at the rate of JPY36 (U$0.26) per kWh under Japan's feed-in-tariff program for over 18 years. Canadian Solar's local subsidiary will perform the long-term operations and maintenance of the power plant.

Built on 460 acres, most of which were converted from abandoned agricultural land following the application of the newly enacted Japanese legislation to promote renewable energy power generation, Azuma Kofuji is expected to produce circa 106,800 MWh of clean and reliable energy, enough to power approximately 31,000 households and avoid over 50,000 metrics tons of CO2-equivalent emissions per year. Furthermore, the project will donate a share of the electricity sales revenues to the Fukushima City, funds of which will be used to promote local agricultural sector activities.

The project was financed by Nomura Capital Investment Co., Ltd. with a construction debt of JPY 24.5 billion (approximately U$175 million), which received an Asset Triple A deal award under the Renewable Energy Deal of the Year Category. The project is expected to participate in the Climate Bonds green certification process which is compatible with the new European Union Green Bond Standard.

"We are delighted to contribute our part to revitalize the Fukushima Prefecture. Before construction works began, the Azuma Kofuji project site was an abandoned, non-productive farmland. Our teams worked closely with the local communities and government in the land conversion process and successfully passed the Environmental Impact Assessment monitored by the Fukushima Prefecture. We are proud to help reinvigorate the local community and economy in a region that was heavily hit by the 2011 Great East Japan Earthquake. We want to ensure that local communities are long-term beneficiaries of clean, renewable energy, and we are proud to take part in rebuilding economic and energy resilience in the Fukushima hometowns while supporting Japan's 2050 carbon neutrality ambitions. Furthermore, I am proud that our team persevered through a time of great economic and market uncertainty to bring this valuable project to good end," commented Dr. Shawn Qu, Chairman and CEO of Canadian Solar.

He added, "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 clean energy transition. We now have over 470 MWp of utility-scale projects that are operational or under construction, and two partnership platforms in Canadian Solar Infrastructure Fund (TSE: 9284) and Japan Green Infrastructure Fund. We are also one of the strongest solar module brands in Japan driven by our differentiated technology and large manufacturing scale. Put together, we have further solidified Canadian Solar's leadership position as the most integrated solar player in the Japanese market. We thank our financing partners who continue to support Canadian Solar with low-cost capital, which allow us to develop and expand our high-quality project portfolio in Japan."

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 21 years, Canadian Solar has successfully delivered around 76 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built and connected over 6.8 GWp in over 20 countries across the world. Currently, the Company has around 311 MWp of solar projects in operation, 5.3 GWp of projects under construction or in backlog (late-stage), and an additional 21 GWp of projects in pipeline (mid- to early-stage). 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 India; 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; uncertainties related to the CSI Solar carve-out listing; litigation and other risks as described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F/A filed on October 18, 2022. 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.

SOURCE Canadian Solar Inc.