Canadian Solar, Toyota Tsusho sign 20-year PPA in Japan

The power purchase agreement covers all the energy generated at a 1.2 MW facility in eastern Japan and a 1.9 MW site in the south west of the country.

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Canadian Solar has entered into a 20-year power purchase agreement (PPA) with Toyota Tsusho in Japan.

Under the terms of the agreement, Toyota Tsusho secures 100% of the power generated at Canadian Solar’s first feed-in premium (FIP) solar projects in the country.

The projects are a 1.2 MW facility in Tsukuba City, Ibaraki Prefecture, on the east coast of the country and a 1.9 MW project in Daisen Town, Tottori Prefecture, located in the southwest. Both projects are powered by Canadian Solar’s CS7N-660W bifacial modules.

The projects were initially awarded feed-in tariffs (FIT) through auctions held in 2020, but Canadian Solar says it decided to switch the projects to FIP in response to the rising demand for renewable energy. FIP-awarded projects can also generate additional revenue through Non-Fossil Certificates, which will also be transferred to Toyota Tsusho under these PPAs.

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“Since launching our Japan PV development business in 2012, we have focused on FIT, as many of our investors preferred the stable cash flows backed by government programs. Today, enterprises are increasingly demanding clean energy to power their businesses,” said Ryota Yamada, General Manager of Canadian Solar's Japan Energy Group.

Yamada added that at the end of March, Canadian Solar’s project development in Japan totaled 240 MW and 1,675 GWh for solar and energy storage respectively.

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