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Released May 10, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As Canadian Solar Incorporated (NASDAQ:CSIQ) (Guelph, Ontario) prepares to benefit from a major outside investment, the company is reckoning with a low-price environment and stiff competition for the solar-components market from China. Industrial Info is tracking more than $10 billion worth of active and planned projects from Canadian Solar worldwide, including about $3.6 billion worth in the U.S. that has a medium-to-high likelihood (70% or more) of beginning construction as scheduled.
Click on the image at right for a graph detailing Canadian Solar's active and planned projects worldwide, by project type.
Over the coming months, Canadian Solar expects to finish construction on two major projects in Texas, representing the company's presence on both the component-production and power-generation sides of the market: its $250 million module-manufacturing plant in Mesquite, which will allow the facility to produce up to 20,000 photovoltaic (PV) modules every day, and its $150 million Liberty County Solar Plant in Dayton, which will use an estimated 250,000 PV panels to generate 100 megawatts (MW). The Liberty County project, which is managed by Canadian Solar subsidiary Recurrent Energy LLC, will service areas of the Texas power grid managed by the Midcontinent Independent System Operator (MISO).
Recurrent, which handles Canadian Solar's utility-scale power-generation projects, also is preparing to wrap up construction this summer on its $129.4 million North Fork Solar Plant in Snyder, Oklahoma, which is designed to generate 120 MW from about 188,300 PV panels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the projects in Mesquite, Dayton and Snyder.
Canadian Solar's power-generation business got a jolt from BlackRock Incorporated (NYSE:BLK) (New York, New York) in January, when the multinational investment firm's Climate Infrastructure business announced a $500 million investment in Recurrent. For more information, see January 24, 2024, article - BlackRock Brightens Canadian Solar's Power-Generation Outlook.
"Since the announcement of BlackRock's $500 million in January, we have made swift progress," said Ismael Guerrero Arias, the chief executive officer of the Recurrent subsidiary, in a recent quarterly earnings-related conference call for Canadian Solar. "Having secured most requisite regulatory approvals, we anticipate closing within the next few months. As part of this transaction and in our commitment to enhancing ESG [ environmental, social and governance] transparency, Recurrent Energy is actively developing an independent ESG strategy to guide our future growth."
Recurrent's projects set to begin construction before the end of the year include the $300 million Papago Solar Plant and an accompanying $100 million BESS unit in Tonopah, Arizona. The latter will support the 300-MW solar plant with Canadian Solar's e-STORAGE lithium-ferro-phosphate (LFP) battery technology. Subscribers can learn more from detailed project reports on the solar plant and BESS unit.
Canadian Solar reported record quarterly deliveries for its e-STORAGE technology in the first quarter of 2024.
Recurrent is seeking permits for another solar-BESS combination in Texas: the proposed BackWater Plant in Valley View, which is roughly 40 miles north of the Dallas-Fort Worth area. As currently envisioned, the solar component would use about 225,000 PV panels to generate 80 MW, while the BESS unit would hold up to 100 MW. If approved, the project could begin construction as early as first-quarter 2025. Subscribers can learn more from a detailed project report.
Canadian Solar also is considering further development of its component business with a proposed PV cell-manufacturing plant in Jeffersonville, Indiana. As envisioned, it would produce about 20,000 high-power modules a day, or roughly 5 gigawatts (GW) worth every year, at a site in Jeffersonville's River Ridge Commerce Center. Subscribers can learn more from a detailed project report.
"With respect to our module[-manufacturing] business, we are at a very difficult point in the cycle," said Shawn Qu, the chief executive officer of Canadian Solar, in the conference call. "Fierce competition is creating immense near-term headwinds for the industry. However, I hope we will see improvement in the second half as the market rationalizes. Demand continues to be strong, and we are seeing signs of improvement in the distributed generation market and certain regions. While prices have stabilized, we remain at historically low levels."
Arias noted artificial intelligence (AI) offers strong business potential for Canadian Solar in the years to come: "AI represents a significant opportunity, and we are witnessing this demand firsthand in our business. We have already secured nearly 700 megawatts of PPAs [power-purchase agreements] with top cloud service providers and are in the process of negotiating hundreds more megawatts of PPAs. More broadly, we continue to target 70% to 80% of our generation capacity to be secured under long-term contracts exceeding 10 years with top-tier companies from a financial rating perspective."
Canadian Solar's capital-spending outlook for full-year 2024 remains unchanged at about $1.8 billion.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Canadian Solar.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Canadian Solar's active and planned projects worldwide, by project type.Over the coming months, Canadian Solar expects to finish construction on two major projects in Texas, representing the company's presence on both the component-production and power-generation sides of the market: its $250 million module-manufacturing plant in Mesquite, which will allow the facility to produce up to 20,000 photovoltaic (PV) modules every day, and its $150 million Liberty County Solar Plant in Dayton, which will use an estimated 250,000 PV panels to generate 100 megawatts (MW). The Liberty County project, which is managed by Canadian Solar subsidiary Recurrent Energy LLC, will service areas of the Texas power grid managed by the Midcontinent Independent System Operator (MISO).
Recurrent, which handles Canadian Solar's utility-scale power-generation projects, also is preparing to wrap up construction this summer on its $129.4 million North Fork Solar Plant in Snyder, Oklahoma, which is designed to generate 120 MW from about 188,300 PV panels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the projects in Mesquite, Dayton and Snyder.
Canadian Solar's power-generation business got a jolt from BlackRock Incorporated (NYSE:BLK) (New York, New York) in January, when the multinational investment firm's Climate Infrastructure business announced a $500 million investment in Recurrent. For more information, see January 24, 2024, article - BlackRock Brightens Canadian Solar's Power-Generation Outlook.
"Since the announcement of BlackRock's $500 million in January, we have made swift progress," said Ismael Guerrero Arias, the chief executive officer of the Recurrent subsidiary, in a recent quarterly earnings-related conference call for Canadian Solar. "Having secured most requisite regulatory approvals, we anticipate closing within the next few months. As part of this transaction and in our commitment to enhancing ESG [ environmental, social and governance] transparency, Recurrent Energy is actively developing an independent ESG strategy to guide our future growth."
Recurrent's projects set to begin construction before the end of the year include the $300 million Papago Solar Plant and an accompanying $100 million BESS unit in Tonopah, Arizona. The latter will support the 300-MW solar plant with Canadian Solar's e-STORAGE lithium-ferro-phosphate (LFP) battery technology. Subscribers can learn more from detailed project reports on the solar plant and BESS unit.
Canadian Solar reported record quarterly deliveries for its e-STORAGE technology in the first quarter of 2024.
Recurrent is seeking permits for another solar-BESS combination in Texas: the proposed BackWater Plant in Valley View, which is roughly 40 miles north of the Dallas-Fort Worth area. As currently envisioned, the solar component would use about 225,000 PV panels to generate 80 MW, while the BESS unit would hold up to 100 MW. If approved, the project could begin construction as early as first-quarter 2025. Subscribers can learn more from a detailed project report.
Canadian Solar also is considering further development of its component business with a proposed PV cell-manufacturing plant in Jeffersonville, Indiana. As envisioned, it would produce about 20,000 high-power modules a day, or roughly 5 gigawatts (GW) worth every year, at a site in Jeffersonville's River Ridge Commerce Center. Subscribers can learn more from a detailed project report.
"With respect to our module[-manufacturing] business, we are at a very difficult point in the cycle," said Shawn Qu, the chief executive officer of Canadian Solar, in the conference call. "Fierce competition is creating immense near-term headwinds for the industry. However, I hope we will see improvement in the second half as the market rationalizes. Demand continues to be strong, and we are seeing signs of improvement in the distributed generation market and certain regions. While prices have stabilized, we remain at historically low levels."
Arias noted artificial intelligence (AI) offers strong business potential for Canadian Solar in the years to come: "AI represents a significant opportunity, and we are witnessing this demand firsthand in our business. We have already secured nearly 700 megawatts of PPAs [power-purchase agreements] with top cloud service providers and are in the process of negotiating hundreds more megawatts of PPAs. More broadly, we continue to target 70% to 80% of our generation capacity to be secured under long-term contracts exceeding 10 years with top-tier companies from a financial rating perspective."
Canadian Solar's capital-spending outlook for full-year 2024 remains unchanged at about $1.8 billion.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Canadian Solar.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
