Canadian Solar Inc. (the "Company", or "Canadian Solar"), one of the world's largest solar power companies and EDF Energies Nouvelles, a global market leader in renewable energy, announced that the 191.5 MWp Pirapora I project had secured a project financing facility amounting to BRL529 million (US$163 million) from the Brazilian Development Bank ("BNDES").
The Pirapora I project is the first-ever solar power generation project to be financed by BNDES, with funding entirely from TJLP (Brazilian Long Term Interest Rate). The 18-year financing facility underscores the confidence of BNDES in the long-term growth of renewable energy in Brazil.
Canadian Solar owns 20% of the photovoltaic project located in Minas Gerais, in partnership with EDF EN do Brasil, EDF Energies Nouvelles' local subsidiary, that has acquired 80% of the project, in October 2016. Canadian Solar has supplied modules manufactured in the State of Sao Paulo, Brazil that satisfy BNDES' local content requirements. The project is fully contracted with a 20-year inflation-linked power purchase agreement (PPA) awarded in 2015 at an auction organized by the Brazilian Government. The project is currently under construction and is expected to reach commercial operation in the third quarter of 2017.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, commented "This cornerstone financing from BNDES for the Pirapora I project demonstrates the total commitment from BNDES and the Brazilian government to support companies willing to invest in the long-term development of solar energy infrastructure in Brazil. We are extremely pleased to have partnered with EDF Energies Nouvelles in securing this landmark transaction in the solar sector."
(Photo Source: Canadian Solar Inc.)
