Canadian Solar, a leading global provider of solar energy solutions, has announced the successful completion of the sale of its 17.5 MWp Hiroshima Suzuhari operational project, located in Hiroshima prefecture, Japan. The project was sold to a private Japanese fund, marking a significant development in the renewable energy landscape.
The Hiroshima Suzuhari solar energy project had been under the ownership of the Japan Green Infrastructure Fund (JGIF) since 2021, and its financing was facilitated through the issuance of a Green Project Bond, garnering an investment-grade rating. Notably, the solar power project was certified with the highest Green 1 rating under the Japanese Green Bond guidelines, affirming its sustainable and eco-friendly credentials.
This transaction signifies a successful execution of JGIF’s business plan, as all projects acquired by the fund have now been effectively sold. Canadian Solar anticipates recognizing the revenue from this transaction in the third quarter of 2023. Recurrent Energy’s local subsidiary will continue to provide long-term operations and maintenance services for the plant post-transaction, ensuring the project’s sustained efficiency and performance.
The Hiroshima Suzuhari solar project commenced commercial operations in Q2 2022 and represents Recurrent Energy’s inaugural project awarded through Japan’s solar auction program initiated in Q4 2017. The project is powered by an array of over 42,500 Canadian Solar HiKu modules, generating clean energy that is being purchased by the Chugoku Electric Power Transmission & Distribution at JPY17.97 (approximately US$0.12) per kWh under Japan’s FIT program, for the remaining tenor of 17.5 years.
This successful sale underscores the growing global interest and investment in renewable energy projects, further supporting Japan’s transition towards a sustainable, low-carbon energy future. Canadian Solar remains at the forefront of driving clean energy initiatives, reinforcing its commitment to a greener and more sustainable world.