Canadian Solar Signs 256 MW Module Supply Contract for the First Two Largest Solar Projects with Private PPAs in South Africa

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Dec 05, 2022, 07:00 ET

GUELPH, ON, Dec. 5, 2022 /PRNewswire/ -- Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ) today announced that its majority-owned subsidiary CSI Solar Co., Ltd. ("CSI Solar") signed a 256 MW solar module contract with SOLA Group, a Cape Town-based independent power producer. The 256 MWs will supply the first two largest utility-scale solar power projects in South Africa, which are based on private power purchase agreements (PPAs).

The two solar projects are 126 MWp and 130 MWp each in size, located in South Africa's North West Province. Both projects are developed and will be operated by SOLA Group and its partners. Construction started in October 2022, and commercial operation is planned for the first quarter of 2024.

Canadian Solar will deliver a total of 390,073 BiHiKu7 modules. The BiHiKu7 CS7N-MB-AG are bifacial modules based on 210mm wafers, and have a power output of up to 670W and an efficiency of up to 21.6%. The BiHiKu7 modules are a perfect fit for utility-scale projects, with great savings on the mounting structure and cable at system level and reduce BoS (Balance of System) and LCOE (Levelized Cost of Energy) costs compared to modules with smaller wafer size. The BiHiKu7 modules are also compatible with most inverters and trackers.

These two solar power projects cover an area of approximately 430ha. Once in operation, they are estimated to generate approximately 580 GWh of clean, renewable electricity every year, equivalent to powering 40,000 households and reducing 595 tons CO2 emissions each year.

Dom Wills, CEO of SOLA Group commented, "These are the first solar projects of this scale in South Africa that are based on private power purchase agreements. It's also a great plus for the country that these projects are 100% South African owned, financed, constructed, operated and managed. We hope the model of private power through bilateral agreements becomes more widely adopted. The benefits to the end user are competition, choice and ultimately a more diverse contribution to the power system."

Dr. Shawn Qu, Chairman and CEO of Canadian Solar commented, "We are pleased to work with SOLA Group on these two solar power projects. This is a great achievement and an important step in South Africa's plan to allow more flexible electricity trading by opening up the grid," Dr. Qu continued, "I'm glad our BiHiKu7 modules have been selected for these projects due to its high product quality, reliability and LCOE cost savings. We look forward to contributing further to the growth of renewable energy in Africa and globally with our high performance/price ratio products."

The SOLA Group is a vertically integrated independent power producer and a leader in the supply of clean energy solutions to private companies in Africa. SOLA's mission is to transform Africa through clean energy.

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 82 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 7 GWp in over 20 countries across the world. Currently, the Company has approximately 500 MWp of projects in operation, 6 GWp of projects under construction or in backlog (late-stage), and an additional 19 GWp of projects in advanced and early-stage 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.

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 Europe; 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 filed on April 28, 2022, as amended 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.

CANADIAN SOLAR INC. INVESTOR RELATIONS CONTACTS

Isabel Zhang
Investor Relations
Canadian Solar Inc.
[email protected]

David Pasquale
Global IR Partners
914-337-8801
[email protected]

SOURCE Canadian Solar Inc.