PVTIME - Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ) announced today it completed the sale of Gunma Aramaki, a 19 MWp operational solar power plant in the Yamaguchi Prefecture in Japan for JPY6.8 billion (approximately US$64 million).
Gunma Aramaki Power Plant (Source: Canadian Solar)
Canadian Solar sold its equity stake in the project to several passive investors in Japan and remains the asset manager and provider of operations and maintenance ("O&M") services under a long-term agreement. Gunma Aramaki reached commercial operation in December 2018 and is powered by Canadian Solar high efficiency modules. The electricity generated is being purchased by Tokyo Electric Power Company at the rate of JPY36 (US$0.35) per kWh for 20 years.
"We have significantly enhanced the value of the Gunma Aramaki power plant over the past two years by acquiring the land for this project, and have meanwhile benefitted from the asset's strong cash generation," said Dr. Shawn Qu, Chairman and CEO of Canadian Solar. "Gunma Aramaki's new owners have invested in our previous projects, and we are pleased to continue working with them. As we remain the asset manager and O&M service provider for this project, we will continue to capture a share of the project's value creation through stable and long-term revenue streams, in addition to the profits from the sale."
Dr. Qu added, "For timing reasons, this project was not sold to the Canadian Solar Infrastructure Fund, but we remain committed to the growth of the fund. Specifically, CSIF has committed to double its assets under management from approximately JPY50 billion (as of June 30, 2020) to JPY100 billion by 2022, by acquiring projects from the sponsor or third parties. For example, during the third quarter this year, we completed the sales to CSIF of the Hokkaido Ishikari and Miyagi Kejonuma projects of 2.4 MWp and 1.0 MWp, respectively."
After the Gunma Aramaki sale, the Company still has 63 GWp of projects in operation and a strong pipeline of 290 MWp in Japan.