Canadian Solar has clinched three significant contracts in Japan's emerging energy storage sector, marking a substantial milestone in the country's transition towards decarbonization. The projects, totaling 193MW, were secured through Japan's inaugural Long-Term Decarbonization Power Source Auction (LTDA).
The developer, Canadian Solar, will engage in capacity reserve agreements (CRA) with the Organization for Cross-regional Coordination of Transmission Operators (OCCTO), ensuring capacity over a 20-year period. These agreements will facilitate offsetting fixed storage system costs through capacity reserve payments.
Located across Aomori, Fukushima, and Yamaguchi prefectures, the projects are anticipated to commence commercial operations between 2027 to 2028. They will feature the cutting-edge SolBank 3.0 system, developed by e-STORAGE, a subsidiary of CSI Solar Co., Ltd.
Dr. Shawn Qu, Chairman and Chief Executive of Canadian Solar, expressed his satisfaction with the achievement, stating: “Our remarkable achievement in Japan's inaugural LTDA underscores our strong position in the energy storage market in Japan.”
Qu emphasized the company's pioneering role in the industry, highlighting their presence since the inception of PV operations in 2009 and their recent establishment in the energy storage market. He attributed their success partly to the introduction of the SolBank 3.0 system, which has provided them with a competitive edge.
“As of January 31, 2024, our project development pipeline in Japan totaled 1.376 GWh and 213MWp for energy storage and solar, respectively,” Qu added, illustrating the company's substantial presence and growth trajectory in the Japanese market.
With the backing of LTDA and rising demand from corporate buyers, Canadian Solar anticipates continued expansion in Japan. Qu reaffirmed their commitment to advancing both Battery Energy Storage System (BESS) and Photovoltaic (PV) projects, aligning with Japan's ambitious goal of achieving carbon neutrality by 2050.
