Canadian Solar Triumphs with 193 MW in BESS Projects in Japan’s First Long-Term Decarbonization Power Source Auction

Canadian Solar Inc. has won 13.3% of Japan’s inaugural Long-Term Decarbonization Power Source Auction (“LTDA”), by securing three battery energy storage system (“BESS”) projects totaling 193 MW.

Canadian Solar is set to engage in Capacity Reserve Agreements (“CRA”) with the Organization for Cross-regional Coordination of Transmission Operators (“OCCTO”). These agreements will span a 20-year period, during which the energy storage projects will deliver capacity in exchange for Capacity Reserve Payments, aimed at offsetting fixed storage system costs. The projects are located in Aomori, Fukushima, and Yamaguchi. The commercial operations are slated between 2027 and 2028. The projects will also feature SolBank 3.0 system from e-STORAGE, a subsidiary CSI Solar Co., Ltd.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, commented, “Our remarkable achievement in Japan’s inaugural LTDA underscores our strong position in energy storage market in Japan. Since launching our PV operations in 2009, we have been at the forefront of the industry. Now, we have also established ourselves in the energy storage market. The introduction of our SolBank 3.0 system has been pivotal, providing us with an edge in competitive market. As of January 31, 2024, our project development pipeline in Japan totaled 1.376 GWh and 213 MWp for energy storage and solar respectively. With the LTDA’s support and increasing demand from corporate buyers, we anticipate continued growth in Japan. We remain committed to advancing both BESS and PV projects, supporting Japan’s goal of achieving carbon neutrality by 2050.”