EDF ENERGIES NOUVELLES TO PARTNER WITH CANADIAN SOLAR FOR AN ADDITIONAL 115 MWP OF SOLAR PROJECT IN BRAZIL

Canadian Solar Inc., one of the world's largest solar power companies, and EDF Energies Nouvelles, a global market leader in renewable energy, announced today the acquisition of 80% interest in Canadian Solar's Pirapora II solar energy project in Brazil by EDF Energies Nouvelles' local subsidiary, EDF EN do Brasil.

The 115 MWp Pirapora II project will start construction in the fall of 2017 and is expected to reach commercial operation in 2018. Canadian Solar will supply the modules for the project from its 380 MWp modules factory established in Brazil to support the local market.

The Pirapora II project, located in the state of Minas Gerais in Brazil, was awarded a 20-year Power Purchase Agreement in the first Reserve Energy Auction. Once completed, the project will generate 231,992 MWh per year and contribute towards the country's goal of obtaining 23% of its energy from non-hydro renewable sources by 2030.

In October 2016, EDF EN do Brasil acquired 80% of Canadian Solar 191.5 MWp Pirapora I project, also located in Minas Gerais. The two projects are adjacent to each other and at combined 306.5 MWp constitute one of the largest solar energy projects in Latin America.

"The investment by EDF Energies Nouvelles in Canadian Solar's Pirapora II project is another testament to the quality of Canadian Solar's project pipeline in Brazil. We have now partnered with EDF EN for two of our three projects in Brazil with awarded long-term PPAs, totaling 306.5 MWp. EDF EN is an important strategic partner of Canadian Solar and we look forward to further expanding our cooperation, while we grow our project pipeline in Brazil and other countries," said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar.

Antoine Cahuzac, Senior Executive Vice President in Renewable Energies of EDF and Chief Executive Officer of EDF Energies Nouvelles added, "This additional Pirapora major solar project confirms the EDF's Group strong ambition to strengthen and diversify its renewables assets portfolio in Brazil, in partnership with a specialized company such as Canadian Solar. Pirapora I 191MW solar project and two wind projects are currently under construction by EDF Energies Nouvelles in the country. EDF Group is also involved in the hydraulic project –Sinop."

BTG Pactual served as financial advisor to Canadian Solar in the transaction.

The machinery consists of DESERT production machines for high-efficiency DESERT solar modules built specifically for extreme hot climate, such as can be seen in deserts or in tropical areas. Made solely in Germany and built using the latest in DESERT and TROPIC module production, the systems inlcudes all cutting-edge technology.

Certified DESERT solar modules, DESERT containers, DESERT power plants and DESERT manufacturing machinery built using pioneering DESERT and TROPICS technology are now fully set up, and ready to perform. But powering on the machinery has been a long time coming. Up until recently, this advanced piece of equipment had been waiting for clearance at a port in Brazil. Now that the formalities have been dealt with, both J.v.G. Thoma and its customer in Brazil can get production under way.

J.v.G. Thoma GmbH is a company whose vision has always been to harness the infinite power of the sun and convert it into an inexhaustible supply of energy. But a vision such as this requires global reach, and this project has opened new doors. Brazil is not only a gateway to South American cooperation, but also the launchpad to international reach and expansion.

Following the delivery of this initial order, J.v.G. Thoma GmbH will be looking forward to an ongoing collaboration with the Brazilian company. From setup and initial training to setting the scene for a ramp up, J.v.G. Thoma will be there to provide expertise and assistance. Moreover, the company will be jointly responsible, along with the client, for the successful integration of the DESERT solar module factory.

In the future, bigger DESERT power plants will be set up on Brazilian soil, and together with existing turnkey production systems, they intend to take up a large share of the products and assets this sector will possess locally. J.v.G. Thoma plans to build up a local network of sales agents that can extend a premium offering to neighbouring countries in South America. Eventually, the company hopes to be able to expand its customer base to clients in North America.

Hans Thoma, general manager from the Thoma-group, is eager to acquire a substantial market share in Brazil, a growing country with tremendous potential for solar energy output. Having complied with local official procedures (Inmetro, TÜV, Fraunhofer CSP) and cleared the way for future business collaboration, he expresses his hope that the solar industry will henceforth expand quickly.

”Being able to introduce Brazil to the infinite opportunities of a solar industry is a privilege for J.v.G. Thoma GmbH, and one that we are extremely grateful for. At the same time, this placed the ball squarely in our court, and the pressure to get the ball rolling quickly was high. Now that the lengthy initial formalities are out of the way, we can focus on making this project a success.“

The first DESERT solar module production in BRAZIL! Let

Source: Canadian Solar Inc.