Canadian Solar's e-STORAGE to Deliver 220 MWh DC of Battery Storage Solutions to Epic Energy's Mannum Project in South Australia

Rhea-AI Summary

Canadian Solar Inc. (NASDAQ: CSIQ) announced that e-STORAGE, a part of its majority-owned subsidiary CSI Solar Co., Ltd., will deliver 220 MWh DC of energy storage solutions to a standalone energy storage project owned by Epic Energy in Mannum, South Australia. The project will employ SolBank, a proprietary energy storage solution using lithium-iron-phosphate (LFP) cells, and will be constructed in the second quarter of 2024. The project reflects Epic Energy's commitment to renewable energy generation and complements the existing solar farm capacity at the same location, serving as a vital energy reservoir to enhance grid stability in the region.

Insights

Energy Sector Analyst

The announcement of Canadian Solar's subsidiary e-STORAGE delivering a 220 MWh DC energy storage solution to Epic Energy's Mannum project in South Australia signifies a strategic expansion of Canadian Solar in the energy storage market. This project underlines the increasing demand for energy storage systems (ESS) as a complement to renewable energy sources, which are inherently intermittent. The use of lithium-iron-phosphate (LFP) cells in the SolBank energy storage solution is noteworthy due to their safety profile and long cycle life, which is essential for grid stability applications. The integration of a top-tier Battery Management System (BMS) and Thermal Management System (TMS) further enhances the value proposition of e-STORAGE's offering by ensuring operational efficiency and longevity of the storage system.

From an industry perspective, the adoption of ESS like SolBank is becoming crucial for utility companies to manage supply and demand, reduce energy wastage and improve the reliability of the grid. The project's impact on Canadian Solar's financials could be substantial, considering the scale of the energy storage solution and the long-term service agreement, which ensures a steady revenue stream. However, the capital expenditure and the project's execution timeline will be key factors in determining the return on investment. The ESS market is competitive and Canadian Solar's ability to deliver on the EPC and LTSA will be critical in establishing its reputation and capturing market share in this burgeoning sector.

Renewable Energy Expert

The partnership between Canadian Solar's e-STORAGE and Epic Energy represents a significant step forward in the integration of renewable energy into the South Australian power grid. The Mannum project's 220 MWh DC capacity is set to play a pivotal role in enhancing energy security and managing the variability of solar power generation. The existing 46 MWp of solar farm capacity at the Mannum site benefits from the region's consistent sunlight, but the addition of a large-scale battery storage system is a game-changer. It enables the capture of excess energy during peak production times and its release during periods of high demand, such as evening hours.

This project is aligned with Australia's broader energy policy goals, which include increasing the share of renewables in the energy mix and improving grid stability to prevent blackouts. The technological advancements in ESS, such as the proprietary SolBank solution, are crucial for the viability of solar and wind projects, as they address the challenge of supply intermittency. The success of the Mannum project could serve as a model for future renewable energy projects, not only in Australia but globally, as countries seek to transition to cleaner energy sources while maintaining grid reliability.

Financial Analyst

Canadian Solar's announcement regarding the Mannum energy storage project carries potential financial implications for the company and its stakeholders. The project represents a significant capital investment, but also a strategic move to diversify Canadian Solar's revenue streams beyond solar panel manufacturing and into the service-oriented segment of energy storage. The long-term service agreement (LTSA) with Epic Energy suggests a recurring revenue model that could enhance Canadian Solar's financial stability and predictability of earnings.

Investors will be closely monitoring the project's progress and its impact on Canadian Solar's balance sheet. The capital costs associated with the Engineering, Procurement and Construction (EPC) agreement will need to be weighed against the expected increase in revenue from the LTSA. Moreover, successful execution of the project could position Canadian Solar as a leader in the energy storage space, potentially driving stock valuation upward. It's essential to consider the competitive landscape of the energy storage market, as well as the regulatory environment in Australia, which could influence the project's profitability and scalability. The financial performance of this project could set a precedent for Canadian Solar's future ESS ventures and shape investor sentiment towards the company's growth strategy in the renewable energy sector.

GUELPH, ON, Jan. 8, 2024 /PRNewswire/ -- Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ) today announced that e-STORAGE, which is part of the Company's majority-owned subsidiary CSI Solar Co., Ltd. ("CSI Solar"), will deliver 220 MWh DC of energy storage solutions to a standalone energy storage project owned by Epic Energy in Mannum, South Australia. The Mannum project is being developed by Canadian Solar through its wholly-owned subsidiary Recurrent Energy. e-STORAGE will begin construction on the Mannum project in the second quarter of 2024.

Epic Energy is one of Australia's leading energy infrastructure companies, with a gas pipeline network spanning over 1,200 kilometres and an expanding renewable energy portfolio. The Mannum storage project reflects Epic Energy's commitment to renewable energy generation and complements the existing 46 MWp of solar farm capacity at the same location, serving as a vital energy reservoir to enhance grid stability in the region.

e-STORAGE will deliver on a comprehensive Engineering, Procurement, and Construction (EPC) agreement and Long-Term Service Agreement ("LTSA"). The Mannum project will employ SolBank, a proprietary energy storage solution using robust and high-cycle capacity lithium-iron-phosphate (LFP) cells. By integrating a top-tier active balancing Battery Management System (BMS) and an exceptionally efficient Thermal Management System (TMS), e-STORAGE's SolBank ensures superior performance at the highest levels of safety.

Clive D'Cruz, Chief Executive Officer of Epic Energy, said, "The standalone battery storage system rounds out Epic Energy's investment at the current Mannum site, with the battery to sit alongside Epic Energy's two adjacent solar farms, which harness the region's consistent sunlight. The battery will further support the South Australian electricity market and ongoing energy security by absorbing excess energy during the day and storing it for use during the evening peak."

Colin Parkin, President of e-STORAGE, commented, "We are delighted to collaborate with Epic Energy and Recurrent as they expand their renewable energy portfolio in Australia by providing our energy storage technology platform. The Mannum project will support Australia with the efficient development of its energy network, further facilitating the adoption of renewable energy generation."

About Canadian Solar

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 22 years, Canadian Solar has successfully delivered over 110 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 around 9.3 GWp of solar power projects and over 3 GWh of battery storage projects across the world. Currently, the Company has around 850 MWp of solar projects in operation, nearly 7.8 GWp of projects under construction or in backlog (late-stage), and an additional 18.7 GWp of projects in advanced and early-stage pipeline. In addition, the Company has a total battery storage project development pipeline of approximately 55 GWh, including approximately 5 GWh under construction or in backlog, and an additional 50 GWh at advanced and early-stage development. 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

e-STORAGE is a subsidiary of Canadian Solar and a leading company specializing in the design, manufacturing, and integration of battery energy storage systems for utility-scale applications. The Company offers its own proprietary LFP battery solution, comprehensive EPC services, and innovative solutions aimed at improving grid operations, integrating clean energy, and contributing to a sustainable future. e-STORAGE had US$2.6 billion of contracted backlog including contracted long-term services agreements as of November 14, 2023. To date, e-STORAGE has successfully implemented over 3.3 GWh DC of battery energy storage solutions in various locations, including the United States, Canada, the United Kingdom, and China. This significant accomplishment solidifies e-STORAGE's position as a key player in the global energy storage integration industry. Currently, the Company operates two fully automated, state-of-the-art manufacturing facilities with an annual production capacity of 10 GWh. e-STORAGE is fully equipped to continue providing high-quality, scalable energy storage solutions and contribute to the widespread adoption of clean energy. Please refer to the Media&PR section of the e-STORAGE website for images and additional information about e-STORAGE, follow the LinkedIn page or visit www.csestorage.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 18, 2023. 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.
investor@canadiansolar.com

e-STORAGE MEDIA INQUIRIES
Simona Marginean
e-STORAGE Marketing Manager
simona.marginean@csestorage.com

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SOURCE Canadian Solar Inc.

FAQ

What did Canadian Solar announce regarding energy storage solutions?

Canadian Solar Inc. (NASDAQ: CSIQ) announced that e-STORAGE will deliver 220 MWh DC of energy storage solutions to a standalone energy storage project owned by Epic Energy in Mannum, South Australia.

When will the Mannum project be constructed?

The Mannum project will begin construction in the second quarter of 2024.

What type of energy storage solution will be employed in the Mannum project?

The Mannum project will employ SolBank, a proprietary energy storage solution using lithium-iron-phosphate (LFP) cells.

Who is the owner of the standalone energy storage project in Mannum, South Australia?

The standalone energy storage project is owned by Epic Energy.

What is the significance of the Mannum project for Epic Energy?

The Mannum project reflects Epic Energy's commitment to renewable energy generation and enhances grid stability in the region.