Canadian Solar and Toyota Tsusho have finalized a 20-year power purchase agreement (PPA) in Japan, encompassing all energy output from two solar projects: a 1.2 MW facility in Tsukuba City, Ibaraki Prefecture, and a 1.9 MW site in Daisen Town, Tottori Prefecture. This collaboration secures Toyota Tsusho’s access to 100% of the electricity generated at these locations.
The projects, powered by Canadian Solar’s CS7N-660W bifacial modules, were originally granted feed-in tariffs (FIT) through auctions conducted in 2020. However, in response to the growing demand for renewable energy, Canadian Solar opted to transition them to feed-in premium (FIP) schemes. FIP-awarded projects offer additional revenue opportunities through Non-Fossil Certificates, which will also be part of the agreement with Toyota Tsusho.
Ryota Yamada, General Manager of Canadian Solar’s Japan Energy Group, highlighted the shift in market dynamics, stating, “Today, enterprises are increasingly demanding clean energy to power their businesses,” while reflecting on the company’s history of focusing on FIT to align with investor preferences for stable cash flows supported by government programs.
As of March, Canadian Solar’s project development in Japan has reached 240 MW for solar and 1,675 GWh for energy storage, underscoring its significant presence and contribution to the renewable energy landscape in the country.