Canadian Solar Inc., a leading global provider of solar power solutions, has recently completed the sale of its 17.5 MWp Hiroshima Suzuhari operational project to a private Japanese fund. Located in Hiroshima prefecture, the project had been owned by the Japan Green Infrastructure Fund (JGIF) since 2021. The financing of the project was facilitated through the issuance of a Green Project Bond that held an investment-grade rating. Notably, the project was also certified with the highest Green 1 rating under the Japanese Green Bond guidelines. This successful transaction marks the completion of JGIF’s business plan, as all the projects acquired by the fund have now been sold.

The revenue from the transaction is expected to be recognized by Canadian Solar in the third quarter of 2023. Recurrent Energy, a local subsidiary of Canadian Solar, will continue its long-term operations and maintenance services for the Hiroshima Suzuhari solar plant post-transaction.

The Hiroshima Suzuhari solar project commenced commercial operation in the second quarter of 2022. It holds the distinction of being Recurrent Energy’s first project to be awarded feed-in-tariff (FIT) through Japan’s inaugural solar auction program launched in the fourth quarter of 2017. The project relies on more than 42,500 high-efficiency HiKu modules supplied by Canadian Solar to generate clean energy. The energy generated is being purchased by Chugoku Electric Power Transmission & Distribution Co. Inc. at a rate of U.S. $0.12 per kWh under Japan’s FIT program, with a remaining tenor of 17.5 years.

Moving forward, Canadian Solar and Recurrent Energy aim to continue building photovoltaic (PV) and storage projects throughout Japan, emphasizing their commitment to delivering clean and sustainable energy to the country.

Canadian Solar’s subsidiary Recurrent Energy’s successful sale of the Hiroshima Suzuhari solar plant in Japan demonstrates their strategic vision and commitment to renewable energy growth in the region. This achievement reinforces their position as a reliable partner in advancing the adoption of clean energy solutions on a global scale.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.