Canadian Solar Inc. has sold its 635 MWp Jaíba V solar project to VTRM, a renewable energy company in Brazil.
The project, located in the northeastern state of Minas Gerais, is expected to begin construction in 2022 and reach commercial operation in 2023.
Once operational, the project will be one of the largest solar projects in the country, covering approximately 3,706 acres of land. Approximately 40% of Jaíba V’s installed capacity is already committed through long-term power purchase agreements (PPA) and the remaining energy will be sold in the free market.
“We are pleased to partner with VTRM in this transaction for the Jaiba V project, which will meaningfully contribute towards Brazil’s goal of obtaining 23 percent of its energy from non-hydro renewable energy sources by 2030,” comments Dr. Shawn Qu, chairman and CEO of Canadian Solar. “With the completion of this sale, Canadian Solar will have successfully monetized 1.6 GWp of utility-scale solar projects in Brazil and will continue to execute and monetize its remaining pipeline of more than 2.5 GWp of high-quality, contracted solar projects.”
The investment is part of the company’s 1.9 GWp pipeline in hydro and solar projects, as well as hybrid solutions, which the market was informed about in October. At the time, VTRM’s shareholders – Votorantim and CPP Investments – announced their intention to consolidate their energy assets into a single platform.
“The acquisition is part of the company’s business expansion strategy with a focus on diversifying renewable energy sources to explore new growth opportunities, in order to bring more robustness and complementarity to VTRM’s current portfolio,” says Fabio Zanfelice, CEO of Votorantim Energia and chairman of VTRM’s management board.