Canadian Solar's e-STORAGE to Deliver Energy Storage Solutions to the Huatacondo Project in Chile

Rhea-AI Summary

Canadian Solar's e-STORAGE has secured a turnkey EPC contract to supply a 98 MW/312 MWh DC Battery Energy Storage System (BESS) to the Huatacondo project in Chile. The project, developed by Sojitz and Shikoku Electric Power Co., Inc. through their subsidiary AustrianSolar Chile Cuatro SpA (ASC4), is set to begin construction in Q1 2025.

e-STORAGE will provide and integrate its advanced SolBank 3.0 energy storage solution, managing all civil, mechanical, and electrical infrastructure for the project. This marks e-STORAGE's first major project in Chile, supporting the country's goal of achieving 70% renewable electricity by 2050.

The SolBank 3.0 offers high performance and safety features, including high-density LFP cells, advanced BMS, and innovative liquid cooling TMS. Its compact design optimizes land use and reduces costs, while its IP55 protection grade ensures reliable operation in the Andean climate.

Positive

• Secured a large-scale 98 MW/312 MWh DC BESS project in Chile
• Expanding global portfolio with first major project in Chile
• Supporting Chile's renewable energy goals, potentially leading to more opportunities
• Showcasing advanced SolBank 3.0 technology with high performance and safety features

Negative

• None.

Insights

Energy Storage Analyst

This project marks a significant expansion for Canadian Solar's e-STORAGE division into the Chilean market, aligning with the country's renewable energy goals. The 98 MW/312 MWh BESS is substantial, capable of providing grid stability and supporting renewable integration. The use of advanced SolBank 3.0 technology demonstrates e-STORAGE's competitive edge in harsh environments. This contract enhances Canadian Solar's position in the growing energy storage market, potentially leading to increased revenue streams and market share. For investors, this signals Canadian Solar's diversification beyond solar panel manufacturing into high-value energy storage solutions, which could improve profit margins and long-term growth prospects in the evolving renewable energy landscape.

Renewable Energy Policy Expert

Chile's commitment to achieving 70% renewable electricity by 2050 creates a favorable market for energy storage projects. This BESS installation is important for grid stability as Chile increases its renewable energy capacity. The project's location in the Tarapacá Region suggests strategic positioning to support solar and wind farms in the area. For Canadian Solar, securing this contract indicates strong competitiveness in a key growth market. Investors should note that such projects often lead to follow-on opportunities and strengthen the company's reputation in the region. The timing of construction start in Q1 2025 allows for potential technology improvements and cost reductions, potentially enhancing project profitability.

GUELPH, ON, Oct. 1, 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) has secured a turnkey EPC contract to supply a 98 MW/312 MWh DC Battery Energy Storage System (BESS) to the Huatacondo project in Chile. The project, developed by Sojitz Corporation and Shikoku Electric Power Co., Inc. through their subsidiary AustrianSolar Chile Cuatro SpA ("ASC4"), is set to commence construction in the first quarter of 2025.

e-STORAGE will provide and integrate its advanced SolBank 3.0 energy storage solution for the project. Under the EPC contract, e-STORAGE will manage all civil, mechanical, and electrical infrastructure for the project.

Toshinori Kawahara, General Manager of ASC4, commented: "Building our energy storage project is a major milestone for ASC4. We are very pleased to be able to contribute to a stable supply of electricity in northern Chile."

Colin Parkin, President of e-STORAGE, stated: "We are pleased to extend our energy storage expertise through the delivery of our first major project in Chile, supporting the government's ambitious goal of getting 70% of its electricity from renewable sources by 2050. This new BESS project in the Tarapacá Region of Chile expands our global portfolio, reinforcing our commitment to delivering reliable, high-performance energy solutions worldwide."

e-STORAGE's SolBank 3.0 offers exceptional performance and safety, featuring high-density LFP cells, advanced BMS, and innovative liquid cooling TMS. Its compact design and high capacity of over 5 MWh per 20-ft container optimize land use and reduce costs. The SolBank 3.0 boasts an IP55 protection grade, making it resistant to wind and rain, ensuring reliable operation in the Andean climate. The SolBank 3.0's capacity to function effectively across a broad temperature spectrum further enhances its durability, making it an ideal solution for demanding environments.

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 energy storage solutions, and developer of utility-scale solar power and battery energy storage projects with a geographically diversified pipeline in various stages of development. Over the past 23 years, Canadian Solar has successfully delivered over 133 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 approximately 11 GWp of solar power projects and 3.7 GWh of battery energy storage projects across the world. Currently, the Company has approximately 1.6 GWp of solar power projects in operation, 6.5 GWp of projects under construction or in backlog (late-stage), and an additional 20.9 GWp of projects in advanced and early-stage pipeline. In addition, the Company has 1 GWh of battery energy storage projects in operation and a total battery energy storage project development pipeline of around 63 GWh, including approximately 8.5 GWh under construction or in backlog, and an additional 54.3 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.

About e-STORAGE

e-STORAGE is a subsidiary of Canadian Solar and a leading company specializing in designing, manufacturing, and integrating battery energy storage systems for utility-scale applications. e-STORAGE offers proprietary battery energy storage solutions, comprehensive EPC services, and innovative solutions aimed at improving grid operations. Currently, e-STORAGE operates two fully automated, state-of-the-art manufacturing facilities with an annual production capacity of 20 GWh energy storage solutions. For more info, please refer to the Media&PR section of www.csestorage.com and follow our LinkedIn page.

About Sojitz

Sojitz Corporation ("Sojitz") was founded in 2003 and operates as one of the leading general trading and investment companies in Japan. Sojitz is engaged in a diverse range of businesses globally and continues to expand on its extensive business experience in Japan and overseas. Specifically, in the energy sector, Sojitz anticipates continued growth of decarbonization-related businesses due to rising global awareness of environmental issues. In addition to pursuing existing asset-based infrastructure businesses such as the Huatacondo BESS project, Sojitz also aims to establish a business management model focused on providing solutions to customers. Through this approach, Sojitz aims to expand earnings opportunities, broaden its business scope, and ensure robust growth.

About Shikoku Electric Power

Shikoku Electric Power (Yonden) was founded in 1951, as one of the utility companies in Japan. Yonden is committed to pursuing initiatives toward the creation and development of future growth engines, to expand revenue in businesses outside the electric power business. The end vision of these initiatives is to achieve sustainable growth into the future, amid turbulent changes in the business landscape. As part of this vision, Yonden is expanding its activity sites to countries around the world together with a variety of business partners. Through technical consulting and international cooperation leading to overseas investments, particularly in overseas power generation projects, Yonden's objective is to further enlarge revenue from its international business, where growth is expected.

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 power and battery energy storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to global pandemics; supply chain disruptions; governmental support for the deployment of solar power and battery energy storage; future available supplies of silicon, solar wafers and lithium cells; 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 China, the U.S., Europe, Brazil and Japan; 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; the pipeline of projects and timelines related to them; the ability of the parties to optimize value of that pipeline; 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; 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 26, 2024. 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 CONTACT
Wina Huang
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 is the capacity of the BESS project Canadian Solar's e-STORAGE is supplying in Chile?

Canadian Solar's e-STORAGE is supplying a 98 MW/312 MWh DC Battery Energy Storage System (BESS) to the Huatacondo project in Chile.

When is the construction of the Huatacondo project in Chile expected to begin?

The construction of the Huatacondo project in Chile is set to commence in the first quarter of 2025.

What energy storage solution is e-STORAGE providing for the Huatacondo project?

e-STORAGE is providing and integrating its advanced SolBank 3.0 energy storage solution for the Huatacondo project in Chile.

What is Chile's renewable energy goal that this project supports?

The project supports Chile's ambitious goal of getting 70% of its electricity from renewable sources by 2050.