Axpo Italia to buy 12 MWp from Canadian Solar’s upcoming Italian units
The Guelph-based solar module manufacturer Canadian Solar Inc. announced today that it has signed a long-term power purchase agreement (PPA) with Axpo Italia for the purchase of energy from two solar power plants under development with a total output of 12 MWp near Ragusa and Enna. in Sicily, Italy.
Axpo Italia is the third largest operator on the free energy market in Italy. As part of the agreement, Axpo Italia will purchase renewable energies and the associated guarantees of origin from the two solar systems. The agreement provides for a guaranteed fixed electricity price for ten years from April 2022 and provides stable cash flows for the projects.
Construction of the two solar power plants will begin in late 2021 and will use the highly efficient modules from Canadian Solar. Once the projects are operational, they will have a total capacity of 12 MWp with an estimated annual production of around 22 GWh. The generated electricity can supply around 8,460 households with electricity, which corresponds to a displacement of 6,860 tonnes of CO2 equivalent emissions or the shutdown of 5,300 cars.
Dr. Shawn Qu, Canadian Solar Chairman and CEO, said, “The growth of renewable energy sources in Italy is critical to meeting the country’s clean energy goals. It is an honor for us to work with Axpo, with whom we share the same vision with regard to the energy transition, and to jointly achieve our goals for renewable energies by using our solar technology and development expertise. “
He adds that Italy is also one of Canadian Solar’s key markets in Europe, the Middle East and Africa, or the EMEA region, as the companies operate a solar pipeline of more than 1.3 GWp in the country.
This month, Canadian Solar announced that it has entered into a strategic partnership and investment with Habitat Energy, a UK-based leader in power trading and asset optimization for battery storage using artificial intelligence (AI) and machine learning. The company also announced its financial results for the quarter ended March 31, 2021, reporting a 32% year-over-year revenue increase and net income of $ 23 million.
The current PPA with Axpo Italia is one of the first private PPAs to be signed on the Italian market. It is also part of a broader framework agreement signed between the two companies in November 2020 to run up to 300 MWp of similar PPAs in the country.
Simone Demarchi, CEO of Axpo Italia, said: “In recent years, renewable energy sources have often been associated with the concept of government incentives, which is no longer the case today. Agreements such as long-term PPAs allow the market and all actors involved to finally leave the incentive logic, making the systems financially sustainable, programmable from a development perspective and beneficial for all stakeholders involved. “