Canadian Solar's e-STORAGE to Deliver Nova Scotia's First Grid-Scale Battery Energy Storage Facilities

Rhea-AI Summary

Canadian Solar's subsidiary, e-STORAGE, has secured a contract from Nova Scotia Power to develop three flagship energy storage projects in Nova Scotia, totaling 150 MW / 705 MWh DC. These projects, located in Bridgewater, Waverley, and White Rock, aim to enhance grid reliability and support the province's clean energy transition. Construction is expected to complete by 2026, with the first site operational in 2025. e-STORAGE will handle engineering, procurement, and construction services, along with long-term service agreements. This initiative marks e-STORAGE's continued expansion in the global energy storage market, leveraging its expertise to meet increasing demand for advanced energy solutions.

Positive

• e-STORAGE secured a contract to develop 150 MW / 705 MWh DC energy storage projects, enhancing grid reliability.
• Projects will support Nova Scotia's transition to cleaner energy, aligning with provincial and federal targets of achieving 80% renewables by 2030.
• Construction completion by 2026, with first site operational in 2025, ensuring timely project delivery.
• e-STORAGE will provide comprehensive EPC services and long-term service agreements, ensuring high safety standards and regulatory compliance.
• e-STORAGE has shipped over 5 GWh of battery energy storage solutions globally, demonstrating extensive expertise and market presence.

Negative

• None.

Financial Analyst

Canadian Solar’s contract to develop grid-scale battery energy storage facilities in Nova Scotia is a significant development from a financial perspective. This contract secures a 150 MW / 705 MWh project, which represents a substantial addition to their existing pipeline.

The commitment to deliver fully operational sites by 2025, with the entire project completed by 2026, highlights a clear revenue stream in the near-term. Investors should note the strategic importance of these projects in enhancing grid reliability and stability, especially as Nova Scotia aims for 80% renewable energy by 2030.

Moreover, the involvement with Nova Scotia Power and the provision of long-term service agreements (LTSA) not only offer consistent revenue but also strengthen Canadian Solar’s positioning in the energy sector. These agreements ensure long-term financial stability and recurring revenue from maintenance and service contracts.

Given Canadian Solar’s track record of delivering over 5 GWh of energy storage solutions, the company seems well-placed to meet the project’s demands. The market's positive response to such large-scale contracts typically reflects on the stock price through increased investor confidence.

Market Research Analyst

The announcement of Canadian Solar’s grid-scale battery energy storage projects in Nova Scotia signals a broader trend in the energy market: the increasing demand for reliable and scalable energy storage solutions. As countries and regions push for 80% renewables by 2030, the role of energy storage becomes critical.

These projects are not just about enhancing grid stability; they represent a shift towards integrating sustainable and renewable energy into the grid. For investors, understanding this trend is crucial. The ability of e-STORAGE to secure this project also showcases their competitive edge in the market, likely due to their proven technology and experience in multiple regions.

Interestingly, the partnership with Nova Scotia Power highlights the growing collaboration between utility companies and technology providers. Such collaborations are vital for achieving large-scale energy transitions. Investors should watch for similar future announcements as they can signal robust future growth.

Tech Expert

From a technological perspective, Canadian Solar's e-STORAGE division stands out due to its comprehensive approach in engineering, procurement and construction (EPC) services. These projects in Nova Scotia underscore their capability to deliver high-capacity, utility-scale battery energy storage solutions.

Battery energy storage systems (BESS) are essential for balancing supply and demand, especially when integrating intermittent renewable energy sources like wind and solar. The 150 MW / 705 MWh capacity will provide significant buffering capabilities, ensuring grid stability and reliability. This is particularly important as Nova Scotia transitions to cleaner energy sources.

e-STORAGE's commitment to cutting-edge technologies and rigorous safety protocols is crucial. Safety and reliability are paramount in energy storage systems and their expertise in this area will likely attract further contracts and partnerships. The scaling up of production to meet growing demand reflects a proactive approach, anticipating market needs and positioning themselves as a leader in the field.

GUELPH, ON, July 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"), has secured a contract from Nova Scotia Power to develop flagship energy storage projects across three locations in Nova Scotia, Canada: Bridgewater, Waverley, and White Rock.

The projects, totaling 150 MW / 705 MWh DC, will play a crucial role in enhancing grid reliability and stability, supporting the province's transition to cleaner energy. Construction will be completed by the end of 2026, and the first site expected to be operational in 2025. e-STORAGE will provide comprehensive engineering, procurement, and construction (EPC) services along with long-term service agreements (LTSA).

e-STORAGE's expertise in engineering utility-scale battery energy storage systems ensures the projects meet the highest safety standards and regulatory requirements. With cutting-edge technologies and rigorous safety protocols, e-STORAGE addresses the increasing demand for energy storage solutions while ensuring community safety and grid reliability.

e-STORAGE has shipped more than 5 GWh of battery energy storage solutions across North America, Europe, and Asia Pacific markets. As a Canadian company, Canadian Solar takes pride in leveraging its global expertise and capabilities to empower Canadian businesses in transitioning to a sustainable energy future. As global demand for advanced energy solutions continues to rise, e-STORAGE is scaling up production to meet the evolving needs of clients and partners.

Peter Gregg, President of Nova Scotia Power, commented, "We look forward to collaborating with communities and project partners to ensure these projects provide the most cost-effective value to our customers. These grid-scale battery energy storage projects will help maintain system reliability during Nova Scotia's clean energy transition, delivering safe and clean energy when needed."

Colin Parkin, President of e-STORAGE, added, "We are thrilled to partner with Nova Scotia Power on these innovative energy storage projects, contributing to provincial and federal targets of achieving 80% renewables by 2030. As Canadians, we are committed to making a significant environmental impact at home while empowering our clients to shift electricity generation to long-term renewable energy sources. We are proud to be setting a precedent for North America, creating local jobs, and enhancing grid reliability."

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 125 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 10 GWp of solar power projects and 3.3 GWh of battery energy storage projects across the world. Currently, the Company has over 1.2 GWp of solar power projects in operation, 6.5 GWp of projects under construction or in backlog (late-stage), and an additional 19.8 GWp of projects in advanced and early-stage pipeline. In addition, the Company has 600 MWh of battery energy storage projects in operation and a total battery energy storage project development pipeline of around 56 GWh, including approximately 4.3 GWh under construction or in backlog, and an additional 51.6 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 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$2.5 billion of contracted backlog including contracted long-term services agreements as of March 2024. e-STORAGE has shipped close to 5.7 GWh of battery energy storage solutions to global markets, including the United States, Canada, the United Kingdom, and China as of March 2024. 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 20 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; litigation and other risks as described in Canadian Solar's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 26, 2024. Although Canadian Solar and Recurrent Energy believe 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 and Recurrent Energy undertake 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 projects did Canadian Solar's e-STORAGE secure in Nova Scotia?

e-STORAGE secured a contract from Nova Scotia Power to develop three energy storage projects in Bridgewater, Waverley, and White Rock, totaling 150 MW / 705 MWh DC.

When will the energy storage projects in Nova Scotia be operational?

The first site is expected to be operational in 2025, with all construction completed by the end of 2026.

How will Canadian Solar's projects benefit Nova Scotia?

The projects will enhance grid reliability, support the province's clean energy transition, and align with targets of achieving 80% renewables by 2030.

What services will e-STORAGE provide for the Nova Scotia projects?

e-STORAGE will provide comprehensive engineering, procurement, and construction (EPC) services, along with long-term service agreements (LTSA).

What is the energy storage capacity of the projects secured by e-STORAGE?

The total energy storage capacity is 150 MW / 705 MWh DC.

What experience does e-STORAGE have in the energy storage market?

e-STORAGE has shipped over 5 GWh of battery energy storage solutions across North America, Europe, and Asia Pacific markets.

How are the Nova Scotia projects aligned with environmental goals?

The projects contribute to provincial and federal targets of achieving 80% renewables by 2030 and support the transition to long-term renewable energy sources.