Canadian Solar Inks 2 PPAs for 274 MW PV Projects in Brazil

Canadian Solar, a leading solar photovoltaic (PV) module manufacturer, has recently entered into two private power purchase agreements (PPA) with Braskem S.A. and COPEL Energia for an aggregate 274 MW of capacity of solar power projects in Brazil.

Braskem is a Brazilian petrochemical company and is the largest producer of thermoplastic resins in the Americas. It is also the largest producer of polypropylene in the United States. The company has implemented innovative processes to improve its efficiency, competitiveness and sustainability.

Under the agreement signed, Braskem will buy solar energy via a 20-year PPA with Canadian Solar, as it strives to reach its sustainability goals.

However, Canadian Solar will develop and build a 152 MWp project in the State of Minas Gerais as per the PPA signed. Moreover, the construction of the project is expected to begin during 2021 and likely to reach commercial operation before the end of 2022.

Significantly, this is the first PPA signed directly between the company and an industrial customer in Brazil, which also sets another landmark for the company in this market.

Besides, the company has signed another PPA with COPEL Energia, which is part of COPEL Group – one of the top ten energy trading companies in Brazil and the largest utility in the State of Paraná.

The company has signed 15-year PPA with Copel and will build a 122 MWp project in the State of Pernambuco in 2021. However, the second phase of a project is already under development by the company.

Commenting on signing the two PPAs, Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, said that “Canadian Solar has established a leadership position in the utility-scale solar market in Brazil and continues to innovate by setting a new trend yet again with private PPAs. We are pleased to partner with Braskem and Copel in this deal to offer integrated energy solutions to our customers, from solar modules to project development and management services. We have a long-term commitment to solar energy in Brazil and it will remain one of our most important markets.”

These two PPAs will add to the company’s Brazilian portfolio of over 1.9 GW of contracted PPAs since it had entered this market, while in Latin America, it has more than 2.6 GW of awarded and contracted PPAs.

Meanwhile, the company will use its high efficiency bifacial BiHiKu modules in both the projects. Once operational, these projects are expected to generate around 610 GWh of clean energy annually, which is equivalent to the annual electricity consumption of about 2,50,000 households.

Earlier, the company revealed that it had experienced the limited impact of the coronavirus outbreak on its production facilities based in China. Although the company faced severe disruptions from January-mid by way of capacity loss amidst the COVID-19 carnage, it did not have a large impact on the production facilities.