Canadian Solar expects to recognize the revenue from the transaction in the second quarter of 2023. Recurrent Energy's local subsidiary will continue to provide long term operations and maintenance services for the plant after the transaction.
The Azuma Kofuji solar project started commercial operation in Q3 2022. The project is Canadian Solar's largest project in Japan and Fukushima prefecture's largest operational solar project to date. The project is powered with Canadian Solar high efficiency HiKu modules and the clean energy generated is being purchased by the Tohoku Electric Power Company at JPY36 (US$0.26) per kWh under Japan's feed-in-tariff program for the remaining tenor of 18 years.
Dr. Shawn Qu, Chairman and CEO of Canadian Solar commented, “We are excited to announce the completion of the sale of our Azuma Kofuji project. This transaction allows us to monetize the project while capturing the stable, long-term revenue streams for our O&M services. We expect to grow this business as we work to enhance and retain a greater share of the value-creation throughout the life cycle of solar and battery energy storage power plants.”
He added, “Since we started developing this project in 2014, our team demonstrated resilience and professionalism overcoming various challenges at different stages of the development cycle. The dedication by everyone in the team allowed us to develop the project from a piece of abandoned agricultural land to what it is today: one of the largest solar power plants in Japan, producing nearly 110 GWh of clean and reliable energy each year, supporting approximately 31,000 households and helping to avoid approximately 50,000 metric tons of CO2 equivalent emissions each year. The successful delivery and sale of the largest PV project in Fukushima Prefecture is another example of Recurrent Energy's strong execution capabilities in the global project development business.”