EDF Renewables North America Places Multi-Year Order for up to 7 GW of Canadian Solar's Made-in-USA Modules

Rhea-AI Summary

Canadian Solar Inc. (NASDAQ: CSIQ) and EDF Renewables North America signed a multi-year module supply agreement for up to 7GW of high efficiency N-type TOPCon solar modules to be produced at Canadian Solar's new factory in Mesquite, Texas. This agreement will support EDF Renewables' project pipeline in the U.S. between 2024 and 2030. Canadian Solar's mission to provide the best return on investment for its customers will be solidified with the high conversion efficiencies of up to 22.5% and other superior features of the TOPCon modules.

Positive

• The signing of the multi-year module supply agreement between Canadian Solar Inc. and EDF Renewables North America signifies a strong partnership and a significant opportunity for both companies to expand their presence in the U.S. renewable energy market. Canadian Solar's investment of over $250 million in a state-of-the-art solar photovoltaic module factory in Mesquite, Texas demonstrates their commitment to growth and innovation.

Negative

• None.

SAN DIEGO and GUELPH, ON, Aug. 9, 2023 /PRNewswire/ -- Canadian Solar Inc. (NASDAQ: CSIQ) and EDF Renewables North America today announced the signing of a multi-year module supply agreement to deliver up to 7-gigawatts (GW) of high efficiency N-type TOPCon solar modules to be produced at Canadian Solar's new factory in Mesquite, Texas.

Under the agreement, Canadian Solar will be supplying its latest high efficiency N-Type TOPCon (Tunnel Oxide Passivated Contact) solar modules to support EDF Renewables' project pipeline in the U.S. between 2024 and 2030. The TOPCon modules will solidify Canadian Solar's mission to provide the best return on investment for its customers. TOPCon modules boast high conversion efficiencies of up to 22.5%, a low temperature coefficient of -0.30%/degrees C, low LID (Light Induced Degradation) resulting in a low power degradation, and improved bifaciality over Mono-PERC modules, all resulting into an increased energy production.

In July 2023, Canadian Solar announced it would invest over $250 million in a state-of-the-art solar photovoltaic module factory in Mesquite, Texas. Once fully ramped up, the factory would have an annual output of 5 GW and create approximately 1,500 skilled jobs. Production is expected to start in Q4 2023. 

Mr. Tristan Grimbert, President and CEO of EDF Renewables North America, said, "The module supply agreement demonstrates our commitment to domestic sourcing and represents a pivotal step for EDF Renewables, enabling us to achieve key milestone dates and execute a schedule for the construction of our robust solar pipeline. We are genuinely excited about our capacity to develop and build solar projects utilizing 'Made-in-USA' solar modules aligning with IRA guidelines. This substantial commitment enhances our ability to minimize risks linked to trade uncertainties and supply chain fluctuations, ultimately propelling our projects towards successful realization.

He added, "Today we solidify our existing partnership, formed in 2019, and also demonstrate our confidence in Canadian Solar. It is a testament to our shared commitment to advancing sustainable energy solutions to decarbonize the grid."

Dr. Shawn Qu, Chairman and CEO of Canadian Solar commented, "This agreement is a testament of the strong relationship and long history of cooperation between our two companies at a global level in the U.S. and in Brazil. We are excited to work with EDF Renewables North America as we bring a stable supply of clean and reliable solar energy to the U.S. market, powered by solar modules made locally, under the backdrop of the Inflation Reduction Act. We look forward to further collaborations and investments contributing to a more global, sustainable, and resilient clean energy supply chain."

About EDF Renewables North America

EDF Renewables North America is a market leading independent power producer and service provider with 35 years of expertise in renewable energy. The Company delivers grid-scale power: wind (onshore and offshore), solar photovoltaic, and storage projects; distribution-scale power: solar and storage; asset optimization: technical, operational, and commercial expertise to maximize performance of generating projects, and onsite solutions, through the Company's PowerFlex subsidiary, offering a full suite of onsite energy solutions for commercial and industrial customers: solar, storage, EV charging, energy management systems, and microgrids. EDF Renewables' North American portfolio consists of 16 GW of developed projects and 13 GW under service contracts. EDF Renewables North America is a subsidiary of EDF Renewables, the dedicated renewable energy affiliate of the EDF Group. For more information visit: www.edf-re.com.  Connect with us on LinkedIn, Facebook and Twitter.

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 around 94 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 8.8 GWp in over 20 countries across the world. Currently, the Company has approximately 609 MWp of projects in operation, 6.9 GWp of projects under construction or in backlog (late-stage), and an additional 17.7 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 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. Contacts

Isabel Zhang
Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com

David Pasquale
Global IR Partners
914-337-8801
csiq@globalirpartners.com

EDF Renewables North America Contacts

Sandi Briner
VP, Communications
mediarelations@edf-re.com

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SOURCE Canadian Solar Inc.

FAQ

What is the multi-year module supply agreement between Canadian Solar Inc. and EDF Renewables North America about?

The agreement is for up to 7GW of high efficiency N-type TOPCon solar modules to be produced at Canadian Solar's new factory in Mesquite, Texas, to support EDF Renewables' project pipeline in the U.S. between 2024 and 2030.

What are the key features of the TOPCon modules?

The TOPCon modules boast high conversion efficiencies of up to 22.5%, a low temperature coefficient of -0.30%/degrees C, low LID (Light Induced Degradation), and improved bifaciality over Mono-PERC modules, all resulting in increased energy production.

What is the expected annual output of Canadian Solar's factory in Mesquite, Texas?

Once fully ramped up, the factory is expected to have an annual output of 5 GW and create approximately 1,500 skilled jobs.

When is the production expected to start at the Mesquite, Texas factory?

Production is expected to start in Q4 2023.