Canadian Solar reports on project pipeline; some projects may be sold this year

Canadian Solar Inc. (NASDAQ:CSIQ) said in its May 11 earnings report for the first quarter that it now owns a fleet of solar power plants in operation totaling 437.5MWp, with an estimated resale value of approximately $950.0 million and gross margin contribution in excess of 20.0%.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, said: “The company does plan to sell some of these assets in the second half of this year, at the same time as we bring additional solar power plants into operation. Our steady, longer-term approach has positioned Canadian Solar for sustained success and has set Canadian Solar apart from competitors.  We remain confident in our business model, outlook and in our ability to manage our profitable growth.”

The company’s solar project pipeline totals 13.5 GWp, including approximately 2.1 GWp of projects in late-stage development, and 11.4 GWp in early- to mid-stage development. The company cautioned that some of the projects under development may fail to secure all the required permits and grid-connection approvals and as a result may not reach completion. 

Canadian Solar’s late-stage, utility-scale solar project pipeline totals approximately 2.1 GWp, of which 849 MWp are in the U.S., 600 MWp are in Japan, 384 MWp are in Brazil, 150 MWp are in China, 63 MWp are in Mexico, and 36 MWp are in the United Kingdom.

In the United States, all seven of the company’s solar projects currently under construction totaling 771 MWp are connected to the grid, and Barren Ridge, Mustang and Tranquillity are already delivering electricity and renewable energy credits (RECs). In addition, Recurrent Energy has secured power purchase agreements totaling 78 MWp for 2017 and 2018 projects in California. The late-stage solar project pipeline in the U.S. is: