SUCCESSFUL SOLAR POWER BUSINESSindonesiangassociety.com/wp-content/uploads/2016/12/CanadianSolar.pdfCanadian Solar –Corporate Overview 2015 Revenue: $3.5 Billion 2015 Shipments:

SUCCESSFUL SOLAR POWER BUSINESSThe Power and Renewable Energy Seminar 2016 – Hosted by the Indonesian Gas Society

Jakarta – 8 December 2016

www.canadiansolar.com

2Canadian Solar Inc.

Sales office Manufacturing facility Total Solutions contracted / late stage projects

Founded in Ontario, 2001

Listed on NASDAQ (CSIQ) in 2006

Over 8,000 employees globally

Presence in 18 countries / territories

> 16GW of solar modules shipped

cumulatively

> 1.8GW solar power plants developed, built

and connected (incl. Recurrent)

Top 2 solar company by MW shipped,

revenue and profits in 2015

Highlights

Global Footprint

Solar Power Plants Built and Connected

Canadian Solar – Corporate Overview

2015 Revenue: $3.5 Billion

2015 Shipments: 4.7GW

2015 Net Income: $172 Million

2016 Shipment Guidance: 5.4 – 5.5GW

*Source: Factset, company analysis as of Sept 2016

80.50261.80

628.10

1,196.10

2011-12 2013 2014 2015


20.4 GWptotal project development pipeline

2.4 GWptotal contracted / late-stage project pipeline(1)

~472 MWpSolar power plants owned and operated resale value of $850million and profit margin contribution in the mid-teens

Additional 900MWpTo be connected in 2016, resale value of $1.25 Billion

Source: Company information as of September 2, 2016Note: (1) Late-stage project and EPC contract pipeline, nearly all projects have an energy off-take agreement and are expected to be built within the next 2-4 years. Some projects may not reach completion due to

failure to secure permits or grid connection, among other risk factors.

Canada

USA

JapanChina

Brazil

UK

Short term

Mid term

Long term

Monitoring

Priority markets for utility-scale project development

1,129 MWpU.S. (1)

576 MWpJapan (1)

384 MWpBrazil (1)

Canadian Solar has a globally diversified pipeline of contracted / late stage projects in low risk geographies

Energy Group - Globally Diversified Pipeline

63 MWpMexico (1)

121 MWpChina (1)


Strategic Positioning

Project Development

Business

Reliable product

Secured funding

Growing pipeline

Predictable demand

Manufacturing Business

Operating

Assets & Asset Sales

Canadian Solar Inc.

Management team with a proven track record

Leading vertically integrated PV module manufacturer

Global leader in the solar project development business

Globally diversified portfolio and pipeline of assets

Leveraged to capitalize on strong demand growth for solar energy

1

2

3

4

5


Module Manufacturing Capabilities in Indonesia:

Sound project development

capabilities, combined with local

manufacturing presence:

• Output: 60MWp per year

• Certified TKDN 40.18% local content

• First Made-in-Indonesia module to be

certified to International standards

Factory locations: Tangerang, Banten


Key Factors for Successful PV Development

Suitable locationland type, location, infrastructure

Capable developerdeveloper expertise, resources and experience

Supporting industryfinancial institutions, contractors and service providers

Fostering environmentgovt. support, policy framework


Key Factor #1: Suitable Location

1. Site SelectionSuitability for solar

- High solar irradiation – satellite and local weather database

- Local conditions, no shading

Infrastructure issues

- Accessibility to site

- Grid connection to evacuate power

- Shipping and logistics

Land issues

- Previous land use – overgrown fauna, previous crops

- Geopolitical risks

- Encumbrances – indigenous species, tenants, religious site

Feasibility for construction

- Available area - Slope and shape

- Natural disasters – flooding, earthquake, soil erosion


Key Factor #1: Suitable Location - Good vs Bad Sites

Land Hills

Heavy vegetation

Very remote

Difficult to access

Grid ConnectionMassive HV power towers

Small and old power lines

Land Flat and open

No shading

Not flood prone

No mountains close

Grid ConnectionEasy access with roads

Infrastructure partly available

Less than 500m to PV power plant

GOOD BAD


Key Factor #1: Suitable Location - Good vs Bad Sites

VegetationHeavy vegetation – bushes and trees

Old vegetation

with long and

strong roots

AccessibilityNarrow / steep access

Washed out road

Not sealed – dirt, gravel

VegetationMinimal trees / shrubs to clear

Minimal vegetation

Soil compacted

No rocks

AccessibilitySealed road close to PV power plant

Wide enough (at least 3m)

Flat and no potholes

GOOD BAD


Key Factor #2: Capable Developer

2. Ideal project development partnerIndustry and project development experience

- Solar-specific project development expertise

- Proven track-record developing globally – shared learning, best practice

- Deep understanding of the unique local particularities

- Asset ownership and maintenance experience

Technology expertise

- Extensive expertise on technical requirements in solar projects

- In-house design and engineering capabilities

Project Finance experience

- Experience in multi-sourcing of debt

- Global and local lender network


Key Factor #3: Supporting Industry

3. Industry support – technical and financialConstruction & Maintenance: reliable and bankable turnkey contractor

- Proven experience in similar scope and type of construction

- Track-record of quality construction – value vs price

- Their supply partners – use of quality components

- Understanding of local conditions and requirements

- Financial capability to undertake project and construction guarantees

Lenders and financial institutions

- Familiarity with local energy industry

- Understanding of the nature of solar/RE projects

- Accurate pricing of risks

- Loan able to match project size

- Covers construction period

- Access to international lenders, multilaterals

- Active dialogue and participation with stakeholders in the industry


Key Factor #4: Fostering Environment

4. Clear and stable support mechanisms + country stability. - Feasible FiT rate or similar support mechanisms adapted to the region

particularities and solar resource.

- PPA: internationally bankable PPAs made available through discussions

with local and international stakeholders

- Program stability, with clear boundaries and timelines:

- Transparent permits, licence and approval processes

- Clear grid-access requirements

- Defined incentives for RE industry participants

- Defined quotas, large enough in order to achieve economies of scale.

- Clear outlook on energy programs with a long-term horizon

= stable environment for industry development and overall job creation


Case Study 1: Isa-shi plants in Kagoshima, Japan

Three Solar Farms totalling 6.5MWp :- 2.3 + 2.2 +2.0 MWp

- More than 25’000 module panels

- Difficult land conditions

- Extreme slopes

- Heavy vegetation


Case Study 1: Isa-shi plants in Kagoshima, Japan

Factors for success:- Challenging Site due to land relief

- Feasible thanks to high FiT rate in Japan = 36-40 JPY (30-33¢ US) / kWh

- In-house technical ability

- Engaged capable partner, consultant and contractors, well-versed with the local

environment and conditions


Case Study 2: Normanton, Australia

Normanton Solar Farm (5MWp) :- 5MW Normanton solar farm under construction

- COD Q1 2017

- 10 hectares

- 16’000 panels

- Extremely hot and humid conditions

Factors for success- ARENA Funding:

- Australian Renewable Energy Agency (ARENA)

established in 2012 by the government to encourage

renewable energy

- Site selection:

- Able to connect directly to a nearby substation

- Low-cost unproductive land

- Community involvement:

- Majority local contractors

- Members of the local aboriginal community involved


Case Study 2: Normanton, Australia

Growth in project pipeline:- Additional 60MWp of projects awarded with

ARENA grants, construction to begin early 2017

- Pipeline of >100MW under own development.


Case Study 3: Pirapora, Brazil

Pirapora Solar Farm (300 MW) :- 300 MW Pirapora solar farm under construction (Phase I)

- COD Phase I: Q3 2017

- 800 hectares

- 1’118’000 panels

- Estimated production: 800’000 MWh/year

- Very hot and humid conditions

Growth in project pipeline:

- Total 400Wp of projects in late stage development.

- Pipeline of >100MW under own development.

Pirapora


Case Study 3: Pirapora, Brazil

Factors for success:

- Careful site selection: large unproductive

low cost land

- Majority local subcontractors, with good

knowledge of the local environment.

- Tap on global project finance group

capabilities.

- Efficient project design and project

management preparation

Other projects and success stories from around the world


PROJECT DEVELOPMENT

NAPANEE, ONTARIO,

CANADA, 10.5 MW


PROJECT DEVELOPMENT

BROCKVILLE, CANADA,

10 MW


PROJECT DEVELOPMENT

ACACIA, CALIFORNIA,

USA, 28.4 MW


PROJECT DEVELOPMENT

ONTARIO, CANADA,

30 MW


PROJECT DEVELOPMENT

RICHMOND,

AUSTRALIA, 3.6 MW


BRANDENBURG,

GERMANY, 148 MW


LARGEST SKI HALL IN EU,

GERMANY, 3 MW


RAJASTHAN, INDIA,

25 MW


AWAJI CITY, JAPAN,

1.34 MW


THANK YOU

For any further questions on the Energy Group:

[email protected] (Lead for Indonesia)

[email protected]

Singapore101 Thomson Road, 15-04

United Square, Singapore 307591

P: + 65 6470 9240

F: + 65 6470 9259

E: [email protected]

Documents

SUCCESSFUL SOLAR POWER BUSINESSindonesiangassociety.com/wp-content/uploads/2016/12/CanadianSolar.pdfCanadian Solar –Corporate Overview 2015 Revenue: $3.5 Billion 2015 Shipments: