The Zaldivar Project, located in Antofagasta Region, is currently at mid-stage development. The project is expected to start construction in 2024 and reach commercial operation in 2026. Once in operation, part of the electricity generated by solar will be purchased by a pool of distribution companies under 15-year U.S. dollar-dominated power purchase agreements (PPAs), and the remaining will be purchased by private energy off-takers.

Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ) today announced it was awarded a 253 MWp solar plus 1,000 MWh battery energy storage project ("Zaldivar Project") in Chile's public tender CNE 2022/01 held by Chile's Energy National Commission (CNE) in July 2022. The CNE awarded a total of 777 GWh/year of new generation backed by three different new renewable projects, of which the Zaldivar Project will account for 16%.

The Zaldivar Project, located in Antofagasta Region, is currently at mid-stage development. The project is expected to start construction in 2024 and reach commercial operation in 2026. Once in operation, part of the electricity generated by solar will be purchased by a pool of distribution companies under 15-year U.S. dollar-dominated power purchase agreements (PPAs), and the remaining will be purchased by private energy off-takers.

Importantly, the Zaldivar Project will contribute meaningfully to Chile's carbon emissions reduction targets, while improving the reliability of the local grid. Specifically, it is expected to displace more than 263,000 tons of CO2 emissions each year. Additionally, the battery storage component of the Zaldivar Project will help improve the reliability and stability of Chile's grid by providing firm capacity, ancillary services, and energy trading services, while enhancing the long-term value of these projects by creating diversified sources of revenue.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, commented, "Chile is one of the most promising renewable markets in Latin America. This solar and battery storage project awarded to Canadian Solar will reinforce our leading position in Latin America, particularly in Chile where Canadian Solar has a backlog of 600 MWp of solar projects and 2.2 GWh of battery storage projects. We will continue to expand our project pipeline in Chile, helping the country meet its goal of achieving carbon neutrality by 2050."

About Canadian Solar Inc.

Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules, provider of solar energy and battery storage solutions, and developer of utility-scale solar power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 21 years, Canadian Solar has successfully delivered around 76 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built and connected over 6.8 GWp in over 20 countries across the world. Currently, the Company has 311 MWp of projects in operation, 5.3 GWp of projects under construction or in backlog (late-stage), and an additional 21 GWp of projects in advanced and early-stage pipeline. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.