Canadian Solar signs PPA for solar power project in Mexico

10 March 2020 (Last Updated March 10th, 2020 09:54)

Photovoltaic (PV) modules manufacturer Canadian Solar has secured a power purchase agreement (PPA) for a 103MWp solar power project in Mexico.

Canadian Solar signs PPA for solar power project in Mexico
The facility is expected to commence power generation in 2021. Credit: Chelsea.

Photovoltaic (PV) modules manufacturer Canadian Solar has secured a power purchase agreement (PPA) for a 103MWp solar power project in Mexico.

The company has signed the deal with combined cycle power plant operator Techgen, which produces electricity for the manufacturing plants in Mexico.

Techgen is an affiliate of steel products firm Ternium and steel tube maker Tenaris.

With the 15-year PPA in place, Canadian Solar will be able to finance and build the 103MWp solar plant.

The company noted that the solar plant will be equipped with Canadian Solar high-efficiency modules. It expects the facility to start operations in 2021.

Canadian Solar chairman and CEO Dr Shawn Qu said: “We are honoured to supply competitive and clean energy to one of the main steel manufacturing corporations in Latin America.

“Signing this PPA demonstrates Canadian Solar’s ability to meet the commercial and environmental needs of corporate customers, strengthening our track record in Mexico where we have already been awarded four projects totalling 438MWp in the long-term auctions.”

Last month, Canadian Solar signed a multi-year agreement to supply 1.2GW of solar modules for Lightsource BP projects in the US and Australia.

In the same month, the company sold a solar power plant in Japan to Hana Financial Investment for an enterprise value of JPY22.3bn ($205m).

In December last year, Canadian Solar divested its Izu-shi solar power plant in Japan to the Canadian Solar Infrastructure Fund (CSIF) for JPY4.6bn ($42.1m).