Canadian Solar Inc., one of the world’s largest solar power companies, today announced it has secured 225.2 million Brazilian reais (US$ 55 million) non-recourse project financing from Banco do Nordeste do Brasil S.A. (BNB) for its Lavras solar power projects. Since the beginning of 2019, Canadian Solar has secured BRL 1,007 million (US$ 247 million) solar project financing with BNB.
The 152.4 MWp Lavras project will be funded over 21 years across the construction and operation phases of the projects. The inflation-linked debt tied to the National Consumer Price Index (IPCA) will provide improved capital and resource alignment with the Brazilian economy.
Dr. Shawn Qu, Chairman and CEO of Canadian Solar commented, “We are delighted to close our fifth consecutive project financing with BNB. Sustainable public sector commitment for clean and affordable solar energy infrastructure has transformed Brazil to be the fastest growing renewable energy market in Latin America. As a leader in financing infrastructure projects, BNB’s continuing participation in our solar portfolio promotes confidence in the long-term potential of Brazil’s renewable energy sector.”
The funding from BNB across multiple projects will support Canadian Solar’s plan to build one of the largest high efficiency bifacial solar power plants in Latin America. These projects will be powered by Canadian Solar high efficiency modules, including the BiHiKu modules.
Canadian Solar won the Lavras solar project in Brazil’s A-4 federal auction in April 2018 with 20-year, inflation-adjusted PPAs awarded at a base price of 118 Brazilian reais/MWh (approximately US$29/MWh) with the Brazilian Electric Power Commercialization Chamber (CCEE). The project is expected to start construction in the second quarter of 2020 and reach commercial operation in 2021.
Lavras is part of a 482.6 MWp portfolio whose 80% interest was sold to Nebras Power Investment B.V., a Dutch affiliate of Nebras Q.P.S.C (“Nebras”). Lavras’ transfer of shares to Nebras closed in August 2019.