Canadian Solar to invest USD 678.5m in Brazilian solar

Canadian Solar Inc (NASDAQ:CSIQ) will invest BRL 2.3 billion (USD 678.5m/EUR 598.5m) in photovoltaics (PV) manufacturing and power generation projects in Brazil, the company said on Friday.

Approximately BRL 80 million from the total investment has been secured with the support of the Brazilian Export and Investment Promotion Agency (Apex-Brasil) and the Sao Paulo State Investment and Exportation Promotion Agency (Investe Sao Paulo) and it will be used in the construction of the 350-MW solar panel factory, plans for which were announced last week. The start of operations is planned for September of this year.

The investment related to the solar power generation projects will be financed by the Brazilian Development Bank, or BNDES, meeting the local content rules. According to Canadian Solar CEO, Shawn Qu, the Brazilian solar market has great potential to grow, specially due to its constant energy auctions.

Canadian Solar has won about 400 MWp of solar power projects through the country's reserve energy auctions. In its financial report in May, it said its late-stage, utility-scale solar project pipeline includes 384 in Brazil.

(BRL 1 = USD 0.295/EUR 0.260)

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