Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ), one of the world's largest solar power companies, today provided an update on its late-stage solar energy project pipeline.
Currently, Canadian Solar's total late-stage solar project pipeline stands at 1.4 GWp, unchanged from 1.4GWp in November of 2014, despite the completion of over 100 MWp of projects in Canada and in the U.S. during the fourth quarter of 2014. As outlined below, the Company has continued to make progress in expanding its pipeline in several geographies, including Japan, the UK and China.
In Canada, the backlog of owned projects and engineering, procurement and construction ("EPC") contracts that are expected to be completed and recognized into revenue in 2015 currently stands at 275 MWp, including the Glenarm power plant which was sold and will be recognized into revenue in the first quarter of 2015. The projects and EPC contract backlog in Canada alone represent a revenue opportunity in excess of C$900 million for Canadian Solar in fiscal year 2015.
In Japan, the backlog of projects that are expected to be built and connected to the grid over the next 3 years currently stands at 606 MWp. Out of the 606 MWp total late-stage pipeline, approximately 262 MWp have full grid connection approval (Keitou Renkei Shoudakusho), with approximately 100 MWp in construction or near ready to start construction. The Company expects to complete construction and grid connection of approximately 80 MWp in Japan during 2015. Out of the total late-stage pipeline in Japan, two projects totalling approximately 125 MWp in the Tohoku utility area, as discussed in a press release issued on October 6, 2014, are affected by the recent changes in curtailment rules, and the Company is still working with the local utility to evaluate the potential impact of the rule changes on these projects. Meanwhile the Company is evaluating several opportunities to expand its project pipeline in the Japanese market with at least 140 MWp of project acquisitions currently under negotiation.
In China, the backlog of projects that are expected to be built and connected to the grid in 2015 totals 320 MWp. Of the total 320 MWp project backlog in China, 90 MWp started construction in 2014 and approximately 30 MWp have already been connected to the grid. As a result, the Company has approximately 70 MWp of utility-scale power plants and 30 MWp of roof-top solar systems in operation in China. These solar power plants and systems that are in operation, are generating revenue from electricity sales as the Company waits for an appropriate opportunity to monetize these investments.
In addition to the progress Canadian Solar has made in its core utility-scale energy markets, the Company also has projects in late-stage of development in the U.S., Brazil, and the United Kingdom.
"We have made enormous progress since entering the solar energy total solutions business in 2009, with over 400 MWp of solar projects and systems energized and delivered to customers in 2014," said Dr. Shawn Qu, Canadian Solar Chairman and Chief Executive Officer. "In the background we have also been busy building our team and our expertise, which is evidenced by our ability to grow our pipeline in existing and new markets. We look forward to continuing that progress in 2015 as we build lasting value for our shareholders."