Canadian Solar has won three solar photovoltaic projects totaling 114 MW in the Brazilian state of Minas Gerais.
In partnership with Brazilian PV developer Solatio, Canadian Solar will develop, build and own the solar power plants, located in the municipality of Vazante. Once connected to the grid, the companies will sell the generated electricity to the state-run energy agency Agencia Nacional de Energia Eletrica under a 20-year power purchase agreement at BRL 216.12 per megawatt hour ($85/MWh).
"We entered the utility scale project development business to differentiate our business model, expand and stabilize our profit margins over the business cycle," said Canadian Solar Chairman and CEO Shawn Qu. "We have since successfully leveraged our experience in Canada to expand our project business in key geographies. This win in Brazil is a testament to the strength of our project development capabilities, and positions us well to participate in the growth in demand for solar energy across the globe."
Solatio partner Pedro Vaquer added that in order to be successful in such a demanding market as Brazil’s energy sector, it was necessary to have "profound local knowledge of the industry and the country as well as high-quality project developments." Vaquer said a collaboration agreement with a sound international player such as Canadian Solar translated "into the perfect combination for the success of our projects."