Canadian Solar Inc. has successfully sold its 17.5 MWp Hiroshima Suzuhari operational project in Hiroshima prefecture to a private Japanese fund. The project, owned by the Japan Green Infrastructure Fund (JGIF) since 2021, was financed through a Green Project Bond with an investment grade rating and certified with the highest Green 1 rating under Japanese Green Bond guidelines.
All JGIF-acquired projects have now been sold as per its business plan. Revenue recognition for this transaction is anticipated in Q3 2023. The Hiroshima Suzuhari solar project, operational since Q2 2022, was Recurrent Energy’s inaugural project awarded feed-in-tariff (FIT) through Japan’s solar auction program in Q4 2017.
The project, powered by over 42,500 Canadian Solar high-efficiency HiKu modules, sells clean energy to Chugoku Electric Power Transmission & Distribution Co., Inc. at JPY17.97 per kWh under Japan’s FIT program for the remaining 17.5 years. Recurrent Energy’s local subsidiary will continue to provide long-term operations and maintenance services for the plant after the transaction.
Commenting about the transaction, Ismael Guerrero, President and CEO of Recurrent Energy noted, “We are excited to announce the completion of the sale of our Hiroshima Suzuhari project through JGIF. Since we applied for Japan’s first FIT auction back in 2017, 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 land to what it is today. This is another example of Recurrent Energy’s strong execution capabilities in the global project development business. We will strive to build more PV and storage projects all over Japan, in order to deliver clean and sustainable energy to the country.”