Canadian Solar, a vertically integrated manufacturer of silicon ingots, wafers, and PV cells and modules, completed the sale of 100 MW Azuma Kofuji solar project located in Fukushima, Japan, to Japanese investors arranged by Mizuho Securities Co., Ltd (“Mizuho Fund”). Canadian Solar expects to recognize the revenue from the transaction in the second quarter of 2023. Recurrent Energy’s local subsidiary will continue to provide long-term operations and maintenance services for the plant after the transaction.
The Azuma Kofuji solar project started commercial operation in Q3 2022. The project is Canadian Solar’s largest project in Japan and Fukushima prefecture’s largest operational solar project. The project is powered with Canadian Solar high-efficiency HiKu modules, and the clean energy generated is being purchased by the Tohoku Electric Power Company at JPY36 (~$0.26) per kWh under Japan’s feed-in-tariff program for the remaining tenor of 18 years.
Dr. Shawn Qu, Chairman and CEO of Canadian Solar, commented, “We are excited to announce the completion of the sale of our Azuma Kofuji project. This transaction allows us to monetize the project while capturing the stable, long-term revenue streams for our O&M services. We expect to grow this business as we work to enhance and retain a greater share of the value-creation throughout the life cycle of solar and battery energy storage power plants.”
According to Mercom’s Q1 2023 Solar Funding and M&A Report, there were 67 large-scale solar project acquisitions in Q1 2023, compared to 61 transactions in Q4 2022. In a recent transaction, Ib vogt, a renewable energy project developer, has agreed to sell the 149 MW Garnacha solar project in Spain to ERG, a renewable energy independent power producer. The Garnacha solar power project is located in the province of Zamora in Spain and is currently in an advanced stage of construction. Commercial operation is expected to begin by the end of 2023, after which ib vogt will provide full O&M services. The transaction for the 100 % stake of Garnacha Solar SL is expected to close by the third quarter of 2023 and represents an enterprise value of 170 million euros (~$188 million).
