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Canadian Solar begins construction on four solar projects in Japan

April 09, 2021

S&P Global Market Intelligence ($):

Canadian Solar Inc. has started building four solar projects in Japan totaling 143 MWp, according to an April 7 news release.

The projects include the 100-MWp Azuma Kofuji project in the Fukushima Prefecture. It is Canadian Solar’s largest project in the country to date and is expected to reach commercial operations in the first quarter of 2023.

Tohoku Electric Power Co. Inc. will purchase the generated electricity at a rate of 36 Japanese yen, or 34 U.S. cents, per kWh. Nomura Capital Investment Co. Ltd. will finance the project with a construction debt of 24.5 billion yen, or about US$230 million. The project is expected to produce enough energy to power approximately 31,000 homes, the release said.

“Up until recently, the Azuma Kofuji project site was an abandoned, non-productive farmland,” said Canadian Solar CEO Shawn Qu in the release. “Now, we are directly investing and creating local job opportunities during the construction of the project, reinvigorating the local economy in a region devastated by the 2011 Tohoku earthquake.”

Other projects, totaling 43 MWp, will be located in the Ibaraki and Hiroshima Prefectures and received 8.1 billion yen, or about US$75 million, through the issuance of green bonds to Japanese investors. Canadian Solar said that Goldman Sachs Japan Co. Ltd was a sole arranger.

[Stephen Cedric Jumchai]

More ($): Canadian Solar break ground on 4 solar projects in Japan

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