Recurrent Energy Signs PPA with GKN Automotive for 115 MWp Rey I Project in Spain

Rhea-AI Summary

Recurrent Energy, a subsidiary of Canadian Solar (NASDAQ: CSIQ), announced a 10-year Power Purchase Agreement (PPA) with GKN Automotive for the 115 MWp Rey I Project in Seville, Spain. The project will generate approximately 200 GWh of renewable electricity annually, marking GKN's first renewable energy PPA in Europe. Rey I is under construction and expected to be operational by H1 2026. The project will produce 240 GWh of clean energy annually, enough to power over 73,000 homes and offset 197,000 metric tons of CO2 emissions. This aligns with GKN's 2045 net zero goal and highlights Recurrent Energy's expertise in large-scale renewable projects.

Positive

• Recurrent Energy signed a 10-year PPA with GKN Automotive for the 115 MWp Rey I Project.
• Rey I Project will generate approximately 200 GWh of renewable electricity annually.
• The project will produce 240 GWh of clean energy each year, powering over 73,000 homes.
• The project will offset approximately 197,000 metric tons of CO2 emissions annually.
• This PPA marks GKN Automotive's first renewable energy agreement in Europe.
• Rey I is expected to be fully operational by H1 2026.

Negative

• None.

Energy Market Analyst

The agreement between Recurrent Energy and GKN Automotive for a 10-year Power Purchase Agreement (PPA) is significant not just for the companies involved but also for the broader renewable energy market. Such long-term agreements provide financial stability and predictability for renewable energy projects, which can be important for securing financing and achieving operational milestones.

From a financial perspective, the 10-year duration of the PPA helps Recurrent Energy mitigate risks associated with market price fluctuations of electricity. This stability makes it easier to plan long-term operations and investments. Additionally, for GKN Automotive, committing to renewable energy can lead to lower and more predictable energy costs over the long term, providing a hedge against rising and volatile fossil fuel prices.

On the market front, this PPA can inspire confidence among other corporations to enter similar agreements, potentially accelerating the adoption of renewable energy projects. The project aligns with Spain's ambitious renewable energy targets and contributes to the country's leadership in this sector.

Environmental Impact Analyst

The environmental implications of the Rey I Project in Seville are substantial. Producing approximately 240 GWh of clean energy annually and displacing roughly 197,000 metric tons of CO2 emissions is a significant step towards sustainability. Such projects are important in the fight against climate change, aligning with global targets to reduce greenhouse gas emissions.

For GKN Automotive, sourcing renewable energy not only supports their corporate sustainability goals but also strengthens their brand image as an environmentally responsible company. This move can attract environmentally-conscious investors and consumers, adding intangible value to their business.

Sustainability Analyst

The commitment of GKN Automotive to renewable energy through this PPA signals a meaningful shift in the automotive industry's approach to sustainability. With the industry being one of the largest contributors to global carbon emissions, such initiatives are essential. This PPA is a tangible step towards GKN Automotive's 2045 net zero ambition, showcasing their proactive stance on climate change.

Moreover, this agreement reflects a growing trend where companies are taking direct action to procure renewable energy, rather than relying solely on carbon offsets. This can lead to direct reductions in operational emissions and contribute to more sustainable business practices across the supply chain.

GUELPH, ON, July 10, 2024 /PRNewswire/ -- Recurrent Energy, a subsidiary of Canadian Solar Inc. ("Canadian Solar") (NASDAQ: CSIQ) and a global developer,  owner, and operator of solar and energy storage assets, announced today that it has signed a 10-year Power Purchase Agreement (PPA)  with GKN Automotive, the global leader in drive systems. This agreement will allow for the annual production of approximately 200 GWh of renewable electricity and marks GKN Automotive's first renewable energy PPA in Europe.

GKN Automotive will source renewable energy from Recurrent Energy's Rey I Project ("Rey I"), a 115 MWp solar PV project located in Seville, Andalucia, Spain. Currently under construction, Rey I is expected to be fully operational by the first half of 2026. Recurrent Energy will own and operate the project upon completion.

The Rey I Project supports Spain's leadership in renewable energy, producing approximately 240 GWh of clean energy each year, enough to power over 73,000 homes in the region and displace approximately 197,000 metric tons of CO2 emissions.

Dr. Clare Wyatt, Chief People, Communications and Sustainability Officer at GKN Automotive, commented, "Signing this PPA with Recurrent Energy underscores our commitment to achieving our 2045 net zero ambition and contributing to decarbonization of the automotive industry. It reflects our intention to continue to drive a cleaner, more sustainable world, through supporting projects that add to the supply of renewable electricity."

Ismael Guerrero, CEO of Recurrent Energy, added, "Recurrent Energy is pleased to support GKN Automotive's commitment to reach net zero carbon emissions by 2045. Over the last 10 years, we have accumulated extensive experience in executing large-scale projects for global customers. We are grateful to GKN Automotive for entrusting us with their first PPA in Europe. This agreement exemplifies our shared dedication to investing in renewable energy projects that contribute to both company operations and the fight against climate change."

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 subsidiary of Canadian Solar Inc. Additional details are available at www.recurrentenergy.com.

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 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 GKN Automotive

GKN Automotive is a world-leading global automotive technology company, pioneering electric drive systems and driving the future of transportation. With a legacy of innovation spanning 250 years, the company is the trusted partner for 90% of the world's automotive companies, specializing in developing, building, and supplying market-leading driveline systems and advanced ePowertrain technologies. GKN Automotive is committed to shaping a cleaner, more sustainable world through its cutting-edge innovations and expertise. GKN Automotive is part of Dowlais, a specialist engineering group focused on the automotive sector.

About Dowlais

Dowlais Company, a renowned automotive technology firm, stands as a beacon of innovation and excellence in the industry. With a rich history spanning decades, Dowlais has consistently pushed the boundaries of automotive engineering, pioneering groundbreaking advancements in electric drive systems and ePowertrain technologies. As a trusted partner to leading automotive manufacturers worldwide, Dowlais Company's expertise, commitment to quality, and forward-thinking approach have positioned it as a driving force in shaping the future of transportation.

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

Recurrent Energy Media Inquiries
Inés Arrimadas
Recurrent Energy
comm_global@recurrentenergy.com 

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SOURCE Canadian Solar Inc.

FAQ

What is the Rey I Project related to Canadian Solar (CSIQ)?

The Rey I Project is a 115 MWp solar PV project in Seville, Spain, developed by Recurrent Energy, a subsidiary of Canadian Solar (CSIQ).

When will the Rey I Project be operational?

The Rey I Project is expected to be fully operational by the first half of 2026.

How much renewable electricity will the Rey I Project generate annually?

The Rey I Project will generate approximately 200 GWh of renewable electricity annually.

What is the significance of the PPA signed by Recurrent Energy and GKN Automotive?

The 10-year PPA between Recurrent Energy and GKN Automotive marks GKN's first renewable energy agreement in Europe and supports their 2045 net zero goal.

How will the Rey I Project impact CO2 emissions?

The Rey I Project will displace approximately 197,000 metric tons of CO2 emissions annually.