Today, Canadian Solar Inc., one of the world’s most comprehensive solar technology and renewable energy companies, announced it signed a long-term power purchase agreement (PPA) with Axpo Italia. Accordingly, this agreement stands to purchase energy produced by two solar power plants (12MWp) under development in Sicily, Italy.
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In fact, this private PPA is one of the first of its kind in the Italian market. It is also part of a broader framework agreement signed between both companies in November 2020. This agreement included the execution of up to 300 MWp of similar PPAs in the country.
About the agreement between Axpo Italia and Canadian Solar in Sicily
Thus, Axpo Italia, the country’s third-largest operator in the free energy market, will purchase renewable energy and their associated guarantees of origin from the two solar plants.
Moreover, the agreement includes a guaranteed fixed electricity price for ten years starting from April 2022. Besides, it will provide stable cash flows to the Ragusa and Enna projects.
According to a press release shared by both companies, the construction of the power plants will begin at the end of 2021. Moreover, Canadian Solar will provide Axpo with its high-efficiency modules.
Once completed, the two solar projects will have a collective capacity of 12 MWp with an estimated annual production of approximately 22 GWh. Accordingly, Axpo and Canadian Solar expect the projects to produce enough electricity to power about 8,460 households.
Reception
Indeed, with that output capacity, the projects will produce power equivalent to displacing 6,860 mt of CO2 emissions; or taking 5,300 cars off the road.
In this sense, Dr. Shawn Qu, Chairman and CEO of Canadian Solar, said; “We are pleased to sign this PPA with Axpo Italia as we execute on the first of many more collaboration opportunities in Italy.”
In fact, “the growth of renewable energy sources in Italy is critical to achieving the country’s clean energy transition objectives. So, we are honored to work with Axpo, with whom we share the same vision on the energy transition. Italy is also one of Canadian Solar’s key markets in the EMEA region; particularly, as we execute on a solar pipeline in excess of 1.3 GWp in the country.”
“Over the past years, renewable energy sources have often been associated with the concept of state incentives; which is no longer the case today;” commented Simone Demarchi, CEO at Axpo Italia. Thus, “agreements such as long-term PPAs finally allow the market and all the actors involved to exit the incentive logic definitively.”
Moreover, “the hope is that this trend, which is already well established in Europe, will soon achieve stability in Italy as well,” added Demarchi. So, “today, we find in Canadian Solar a new partner able to understand; and furthermore, appreciate the potential and advantages of this tool.”
