Canadian Solar has sold its 635MWp Jaiba V photovoltaic project to Brazilian renewable energy company VTRM.
Jaíba V, located in the north-east state of Minas Gerais, is in an advanced stage of development and is expected to start construction in 2022.
It is scheduled to reach commercial operation in 2023.
Once operational, Jaíba V will be one of the largest solar projects in the country, covering approximately 1500 hectares.
It is estimated to generate clean electricity equivalent to the annual consumption of over 500,000 households.
Approximately 40% of Jaiba V’s installed capacity is already committed through long-term power purchase agreements, and the remaining energy will be sold in the free market.
Canadian Solar chairman and chief executive Shawn Qu said: “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% of its energy from non-hydro renewable energy sources by 2030.
“With the completion of this sale, Canadian Solar will have successfully monetized 1.6GWp of utility-scale solar projects in Brazil and will continue to execute and monetize its remaining pipeline of more than 2.5GWp of high-quality, contracted solar projects.”
VTRM chairman Fabio Zanfelice said: “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.”
The investment is part of the company’s 1.9GWp 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 the intention to consolidate their energy assets into a single platform.