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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Energy Information Administration (EIA) forecasts utility-scale solar generation will grow by 10 million megawatt-hours (MWh) across the U.S. between June and August, when compared with the same period last summer. While U.S.-based solar companies are struggling with supply-chain issues and tariffs on solar panel components, Canadian Solar Incorporated (NASDAQ:CSIQ) (Guelph, Ontario) is planning to expand its production capacity in the coming years, growing its sales volumes by a compound annual growth rate of about 50% to 2026. Industrial Info is tracking nearly US$5 billion worth of active projects from Canadian Solar and its subsidiaries, about US$3.6 billion of which is in the U.S.
Click on the image at right for a graph detailing Canadian Solar's active projects worldwide, by project type.
In a quarterly earnings-related conference call earlier this week, Ismael Guerrero, the vice president of Canadian Solar, noted the total capacity for contracted solar and battery-storage projects in the company's pipeline "was approximately 5 gigawatts and 2.7 gigawatt-hours, respectively, which is all [of the projects under] construction, plus more than 90% of backlog projects. It is also important to note that the value of our pipeline is not only in its contracts, but also on the quantity and quality of interconnection agreements we have on hand, which currently is 12 gigawatts for solar and 11 gigawatt-hours for storage."
Recurrent Energy, a subsidiary of Canadian Solar, is nearing completion of its US$138.4 million Sunflower County Solar project in Ruleville, Mississippi, which has been under construction since April 2021. The facility is designed to generate 100 megawatts (MW) from 350,000 photovoltaic (PV) panels manufactured by Canadian Solar. Once operational, the project will be owned by Entergy Mississippi, a subsidiary of Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana). Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read more in a detailed project report.
In Canada, Canadian Solar expects to finish construction toward the end of this year on a US$30 million solar plant near Tilley, Alberta. The facility is designed to generate 21 MW from 79,000 PV panels. Subscribers can read more in a detailed project report.
In addition to these projects under construction, Canadian Solar is reviewing two proposed projects from subsidiary Cascade Solar Energy LLC (Austin, Texas) for the Texas Gulf Coast: a 200-MW solar farm and a 200-MW battery energy-storage system (BESS) in Rosharon, which is about 40 miles southwest of the Houston Ship Channel. Canadian Solar expects to make a final investment decision by January 2023. Subscribers can read detailed project reports on the solar farm and BESS.
"We're also excited about the significant opportunity in our battery-storage business," said Yan Zhuang, the president of Canadian Solar, in the conference call. "In Q1, we shipped 290 megawatt-hours of storage systems, and we expect a significant ramp-up from Q2 onward. We're also expanding our market reach from mostly selling to the U.S. market, to enter in new markets such as the U.K. and China."
Canadian Solar also is working as an engineering, procurement and construction (EPC) contractor on utility-scale solar developer BrightSource Energy Incorporated's (Oakland, California) $325 million BESS addition at its Crimson Solar Plant in Blythe, California. The project, which began construction last August and is expected to wrap up this summer, is expected to have a 350-MW capacity. Subscribers can read more in a detailed project report.
Executives expect capital spending to total about US$850 million for full-year 2022. "We expect our ingot, wafer and cell [manufacturing] capacity to reach approximately 28 gigawatts by the end of 2022, which is meaningfully higher than what we previously communicated," said Shawn Qu, the chief executive officer of Canadian Solar, in the conference call. "Our module capacity will be 32 gigawatts, in line with our prior target. This will meaningfully increase the level of vertical integration of our manufacturing capacity, allowing us to better control our costs technology and product quality, thereby further improving our pricing power."
Canadian Solar's net income was reported to be US$9.2 million in the first quarter, compared with US$22.8 million in the first quarter of 2021. Revenues stood at US$1.25 billion, compared with US$1.09 billion in the same period last year. Zhuang acknowledged strong demand in China and India drove cost inflation for polysilicon materials to unforeseen highs in the first quarter of 2022, but believes polysilicon pricing will relax in the second half of the year: "Once capacity maintenance activities are over and more supply is added to the market, we expect demand to remain strong, especially once pricing starts to come down."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Click on the image at right for a graph detailing Canadian Solar's active projects worldwide, by project type.In a quarterly earnings-related conference call earlier this week, Ismael Guerrero, the vice president of Canadian Solar, noted the total capacity for contracted solar and battery-storage projects in the company's pipeline "was approximately 5 gigawatts and 2.7 gigawatt-hours, respectively, which is all [of the projects under] construction, plus more than 90% of backlog projects. It is also important to note that the value of our pipeline is not only in its contracts, but also on the quantity and quality of interconnection agreements we have on hand, which currently is 12 gigawatts for solar and 11 gigawatt-hours for storage."
Recurrent Energy, a subsidiary of Canadian Solar, is nearing completion of its US$138.4 million Sunflower County Solar project in Ruleville, Mississippi, which has been under construction since April 2021. The facility is designed to generate 100 megawatts (MW) from 350,000 photovoltaic (PV) panels manufactured by Canadian Solar. Once operational, the project will be owned by Entergy Mississippi, a subsidiary of Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana). Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read more in a detailed project report.
In Canada, Canadian Solar expects to finish construction toward the end of this year on a US$30 million solar plant near Tilley, Alberta. The facility is designed to generate 21 MW from 79,000 PV panels. Subscribers can read more in a detailed project report.
In addition to these projects under construction, Canadian Solar is reviewing two proposed projects from subsidiary Cascade Solar Energy LLC (Austin, Texas) for the Texas Gulf Coast: a 200-MW solar farm and a 200-MW battery energy-storage system (BESS) in Rosharon, which is about 40 miles southwest of the Houston Ship Channel. Canadian Solar expects to make a final investment decision by January 2023. Subscribers can read detailed project reports on the solar farm and BESS.
"We're also excited about the significant opportunity in our battery-storage business," said Yan Zhuang, the president of Canadian Solar, in the conference call. "In Q1, we shipped 290 megawatt-hours of storage systems, and we expect a significant ramp-up from Q2 onward. We're also expanding our market reach from mostly selling to the U.S. market, to enter in new markets such as the U.K. and China."
Canadian Solar also is working as an engineering, procurement and construction (EPC) contractor on utility-scale solar developer BrightSource Energy Incorporated's (Oakland, California) $325 million BESS addition at its Crimson Solar Plant in Blythe, California. The project, which began construction last August and is expected to wrap up this summer, is expected to have a 350-MW capacity. Subscribers can read more in a detailed project report.
Executives expect capital spending to total about US$850 million for full-year 2022. "We expect our ingot, wafer and cell [manufacturing] capacity to reach approximately 28 gigawatts by the end of 2022, which is meaningfully higher than what we previously communicated," said Shawn Qu, the chief executive officer of Canadian Solar, in the conference call. "Our module capacity will be 32 gigawatts, in line with our prior target. This will meaningfully increase the level of vertical integration of our manufacturing capacity, allowing us to better control our costs technology and product quality, thereby further improving our pricing power."
Canadian Solar's net income was reported to be US$9.2 million in the first quarter, compared with US$22.8 million in the first quarter of 2021. Revenues stood at US$1.25 billion, compared with US$1.09 billion in the same period last year. Zhuang acknowledged strong demand in China and India drove cost inflation for polysilicon materials to unforeseen highs in the first quarter of 2022, but believes polysilicon pricing will relax in the second half of the year: "Once capacity maintenance activities are over and more supply is added to the market, we expect demand to remain strong, especially once pricing starts to come down."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
