Recurrent Energy Completes Sale of 100 MW/200 MWh Battery Energy Storage Project in South Australia to Epic Energy
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Insights
The completion of the sale of the Mannum energy storage project by Recurrent Energy, a subsidiary of Canadian Solar, to Epic Energy is a significant transaction within the renewable energy sector. This deal represents a strategic expansion for Epic Energy in the South Australian market, where energy storage solutions are increasingly critical to manage the intermittent nature of renewable energy sources. The 100 MW/200 MWh energy storage capacity is substantial, considering South Australia's push towards renewable energy and the need for grid stability.
The integration of this storage system with existing solar projects enhances the value proposition of Epic Energy's renewable assets by ensuring a more reliable and consistent energy supply. This move is likely to be well-received by investors as it signals Canadian Solar's effective asset turnover strategy and Recurrent Energy's ability to develop and divest projects, which can lead to a positive impact on Canadian Solar's financial performance and potentially its stock valuation.
From a market perspective, the sale of the Mannum energy storage project aligns with global trends towards investment in energy storage systems. The renewable energy market in Australia is rapidly growing, driven by government policies aimed at decarbonization and the transition to a more sustainable energy mix. Energy storage projects like Mannum are essential to this transition, as they address the challenge of renewable energy variability and contribute to grid stability.
Given the increased demand for renewable energy solutions, this sale may position Canadian Solar and its subsidiary Recurrent Energy as leaders in the energy storage market, potentially increasing their market share. The successful execution of this project and future developments could serve as a blueprint for similar projects globally, enhancing the company's reputation and market influence.
Financially, the divestiture of energy storage assets like the Mannum project can be a liquidity event for Canadian Solar, providing immediate capital that can be reinvested in the development of new projects or used to strengthen the company's balance sheet. This transaction may also reflect positively on the company's earnings reports, depending on the profit realized from the sale, which would be of interest to shareholders and analysts tracking Canadian Solar's financial health.
In the long-term, the consistent ability to develop and sell high-value assets can lead to a stronger project pipeline, which is often a key metric for investors evaluating companies within the renewable energy sector. The strategic divestment of assets, particularly in a high-growth market such as Australia, could signal the company's adeptness at capitalizing on market opportunities and managing its portfolio for optimal returns.
Mannum energy storage is the third project that Recurrent Energy has sold to Epic Energy, a South Australian-based energy infrastructure owner and operator. Epic Energy currently owns the 7 MW Mannum Stage One and 39 MW Mannum Stage Two solar projects, which were both developed by Recurrent Energy.
Recurrent Energy began development of Mannum energy storage, located in Mannum,
Clive D'Cruz, Chief Executive Officer of Epic Energy, said, "We are delighted to work with Recurrent Energy again at the Mannum site. The battery energy storage system rounds out Epic Energy's investment at the current site, sitting alongside our two adjacent solar farms. The standalone battery will create much needed energy storage to support the supply of excess renewable energy to the grid during peak periods and to enhance stability."
Ismael Guerrero, CEO of Recurrent Energy, said, "We are delighted to collaborate with Epic Energy once again on the sale of our third project to them.
About Recurrent Energy
Recurrent Energy is one of the world's largest and most geographically diversified utility-scale solar and energy storage project development, ownership and operations platforms. With an industry-leading team of in-house energy experts, Recurrent Energy is a wholly-owned subsidiary of Canadian Solar Inc. and functions as Canadian Solar's global development and power services business. Additional details are available at www.recurrentenergy.com.
About Canadian Solar
Canadian Solar was founded in 2001 in
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
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Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com
RECURRENT ENERGY MEDIA INQUIRIES
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SOURCE Canadian Solar Inc.
FAQ
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