Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ) announced today the closing of a 17.7 MWp portfolio sale in Italy to Sonnedix. The Company expects to recognize revenue from the sale in the first quarter of 2020.
The portfolio of five solar PV plants in Sicily was jointly developed by Canadian Solar and Manni Energy and has been operational since February 2020. The energy produced is sold to TrailStone Renewables GmbH through a recently signed 10-year PPA. This is one of the longest PPAs for subsidy-free solar portfolios in Italy to date. These solar plants are expected to produce approximately 34 GWh of clean energy per annum, equivalent to providing approximately 12,000 Italian households with clean solar energy.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar commented, "We are pleased to partner with Sonnedix and Manni Energy on the sale of our landmark subsidy-free portfolio in Italy, the first-of-its-kind in the local market. Italy is one of Canadian Solar's core markets in the EMEA region and we are committed to investing and growing it even during difficult times. Just a few days ago, we secured EUR 55 million in project financing to fund the construction of 151 MWp of solar power plants in Sicily, Apulia and Lazio, which are expected to break ground in Q3 this year. We have been active in the Italian subsidy-free market since 2018, and now have over 900 MWp of project pipeline under permitting, solidifying our position as one of leading players in the country."
Mr. Franco Citron, Head of Business Development at Manni Energy, commented, "It was a great pleasure to collaborate with Canadian Solar and Sonnedix, two key players in the solar industry. We believe that moving towards market parity, a path that Manni Energy undertook two years ago, is the right way to contribute to Italy's decarbonization goals as stated in the Integrated National Energy and Climate Plan, which runs through 2030. Based on this belief, we started the development of important projects for the 2020-2022 triennium, not only in southern but also in northern and central Italy. In addition, we are working on solutions and technologies that will optimize the energy generation of these plants, with the aim to make the prime cost of energy even more sustainable and competitive."