Canadian Solar sells 70% stake in key Brazilian solar projects to SPIC Brasil

In a major deal in the South American renewable energy market, Canadian Solar Inc. today announced it signed an agreement with SPIC Brasil to sell 70% stake in its 738 MWp solar power projects – Marangatu and Panati-Sitia in Brazil. SPIC Brasil is a leading power generation company in Brazil.

SPIC Brasil is a leading power generation company in Brazil. The Marangatu and Panati-Sitia projects, 446 MWp and 292 MWp each in size, are located in the Northeastern states of Brazil. According to Canadian Solar, the projects are spread over an area of 2,200 hectares and both the projects are at an advanced stage of development.

The official statement of Canadian Solar mentions that the solar projects are expected to begin construction in late 2022 and reach commercial operation in late 2023.

Canadian Solar also said that once the solar projects are in operation, they might be the two of the largest solar power plants in Brazil. Solar electricity generated will be equivalent to power 900,000 homes in Brazil every year.

Around 75 per cent of Marangatu and Panati-Sitiá’s assured energy is already committed through long-term PPAs, and the remaining will be sold in the free market, said Canadian Solar.

Dr. Shawn Qu, Canadian Solar Chairman and CEO, said on the development, “With the completion of this sale, Canadian Solar will have successfully monetized 2.3 GWp of utility-scale solar projects in Brazil. We will continue to execute and monetize our remaining backlog of 1.6 GWp of high-quality, contracted solar projects in Brazil.” Canadian Solar looks to expand in other Latin American markets including Colombia and Chile.

Adriana Waltrick, CEO of SPIC Brasil, said, “SPIC group already has an extensive experience in implementing solar projects, being one of the main competitors in the sector worldwide. This acquisition marks the company’s first solar investment in Brazil and the partnership with Canadian Solar is strategic, given Canadian Solar ‘s experience and pioneering spirit on solar projects implementation and manufacturing.”

Brazil has set a goal of obtaining 23 per cent of its energy from non-hydro renewable energy sources by 2030. The country is banking high on wind and solar sources; according to Brazilian Photovoltaic Solar Energy Association (Absolar), the country’s installed solar capacity has almost doubled from 7.7 GW in 2020 to 14 GW in 2021. Its 2050 National Energy Plan wants to take the installed solar PV capacity of the country up to 90 GW by 2050.