Solar power company, Canadian Solar Inc., has signed a power purchase agreement (PPA) with investment bank, BTG Pactual. As a result, Canadian Solar was awarded with two projects in a private auction by Furnas Centrais Elétricas (Furnas), for a total of 862 MWp in solar projects in Brazil.
The 12-year PPA will supply solar energy from a 170 MWp cluster of projects located in the State of Minas Gerais. The projects will start construction in 2021 and are expected to achieve commercial operation by the end of 2022.
Furnas will purchase solar energy from two Canadian Solar projects through a 15-year PPA. Canadian Solar will develop and build both Furnas projects totaling 692 MWp. The first project will be in the State of Ceará and will have a capacity of 260 MWp, while the second project will be in the State of Piuaí and will have a capacity of 432 MWp. Both projects will start construction in 2022 and are expected to reach commercial operation by the end of 2023.
Furnas is a majority-controlled subsidiary of Centrais Elétricas Brasileiras S.A.; Eletrobras Furnas’ focuses on energy generation, transmission and sales. The business operates in 16 Brazilian states and is the owner of 21 hydro plants, two thermal plants, one wind farm and 30,000 kilometers of transmission lines.
“After the 274 MWp in corporate PPAs that we signed earlier in June, the volume of projects secured in this PPA and auction is the largest in Canadian Solar’s history, and it increases our backlog of solar projects in Brazil with PPAs (or equivalent) to almost 2.2 GWp, ” said Dr. Shawn Qu, Chairman and CEO of Canadian Solar.