Power Technology

Daily Newsletter

10 August 2023

Daily Newsletter

Canadian Solar secures contract from EDF Renewables North America

The solar modules will be deployed across EDF Renewables' projects pipeline in the US.

Canadian Solar has secured a contract from EDF Renewables North America to supply 7GW of solar modules.

Canadian Solar will deliver its N-type tunnel oxide passivated contact (TOPCon) solar modules, which will be deployed across EDF Renewables' project pipeline in the US between 2024 and 2030.

EDF Renewables North America president and CEO Tristan Grimbert stated: “The module supply agreement demonstrates our commitment to domestic sourcing and represents a pivotal step for EDF Renewables, enabling us to achieve key milestone dates and execute a schedule for the construction of our robust solar pipeline.

“We are genuinely excited about our capacity to develop and build solar projects utilising "made-in-USA" solar modules aligning with IRA [Inflation Reduction Act] guidelines.

“This substantial commitment enhances our ability to minimise risks linked to trade uncertainties and supply chain fluctuations, ultimately propelling our projects towards successful realisation.”

The solar modules will be manufactured at Canadian Solar’s new factory in Mesquite, Texas.

In July 2023, Canadian Solar announced that it would also invest $250m (C$335.12m) to develop a modern solar photovoltaic module factory in Mesquite.

With a 5GW production capacity annually, the new factory will create 1,500 skilled jobs.

Solar module production at the facility will begin in Q4 2023.

Canadian Solar chairman and CEO Dr Shawn Qu stated: “This agreement is a testament to the strong relationship and long history of cooperation between our two companies at a global level.

“We are excited to work with EDF Renewables North America as we bring a stable supply of clean and reliable solar energy to the US market, powered by solar modules made locally, under the backdrop of the Inflation Reduction Act."

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.