Canadian Solar Infrastructure Fund : Impact of the Temporary Output Curtailment by Kyushu Electric Power – EQ Mag Pro

Impact of the Temporary Output Curtailment by Kyushu Electric Power

Canadian Solar Infrastructure Fund, Inc. (the “Fund” or “CSIF”) hereby provides further update on the impact of the temporary curtailment (the “Curtailment during the Month”) on renewable energy output conducted by the Kyushu Electric Power Transmission and Distribution Co., Inc. (“Kyushu Electric”) in February 2022 to the Fund’s assets in Kyushu during this period.

1. The results of CSIF PV Plant affected by the Curtailment during the Month

Based on the Kyushu Electric notification, energy generation from the Fund’s PV Power Plants (the “Power Plants”) was temporarily suspended as below. Please refer to “Notice Concerning the Temporary Output Curtailment by Kyushu Electric Power” released on February 28, 2022, respectively to confirm the date of curtailment for each Power Plant.

2. The Financial Impact of the Curtailment during the Month

The financial impact of the Curtailment during the Month is provided in the following table. The actual power generation of February 2022 reported in “The Solar Power Generation and CO2 Reduction Data” released on March 7, 2022 compared to the forecast was 108.30%. The impact of the Curtailment during the Month was incorporated in these results.

(JPY in thousand)

Actual variable rent reduction by the Curtailment during the Month (Note 1)

JPY 4,387

Accumulated actual variable rent reduction for the 10th fiscal period until February 2022

JPY 30,175

(Ratio to the forecasted rent income of CSIF’s portfolio for the 10th fiscal period)

(0.81%)

Forecasted rent income reduction by curtailments in the 10th fiscal period

JPY 69,775

(Ratio to the forecasted rent income of CSIF’s portfolio for the 10th fiscal period)

(1.84%)

(For reference)

Suspended energy output in the 10th fiscal period vs. energy output forecast (P50-based

0.12%

(Note 2) before incorporation of forecasted impact of curtailment)

(0.79%)

(Accumulated suspended energy output for the 10th fiscal period until February 2022)

(Note 1) The Base Rent for CSIF is represented as 70% of the P50-based monthly energy output forecast. The rent income reduction from the curtailments will be reflected as lower variable rent.

(Note 2) P50-based energy output forecast is calculated by the producer of technical reports or other experts on the assumption that it happens with an occurrence probability of 50%. The rent scheme of CSIF is a combination of the base rent and the variable rent which can be paid in case actual energy outfit is greater than 70% of P50-based monthly energy output forecast.

3. Disclosure timing of the Temporary Output Curtailment

Although disclosures for the temporary output curtailment had been made together with the financial impact on the next Monday (next business day if it is not a business day) if the temporary output curtailment is conducted from Monday to next Sunday from the disclosure “Impact of the Temporary Output Curtailment by Kyushu Electric Power” released on May 7, 2019, after “Notice Concerning the Temporary Output Curtailment by Kyushu Electric Power” released on February 22, 2021, the disclosure for the combined fact that the temporary output curtailment has been conducted will be made next Monday (next business day if it is not a business day) if the temporary output curtailment is conducted from Monday to next Sunday and the financial impact will be disclosed monthly basis in the middle of next month so that Canadian Solar O&M Japan K.K., the O&M operator for CSIF, aggregates detailed data on the time slots the curtailment conducted for the Installed Power Plant and the substantial suspended energy output for those power plant to disclose more accurate information.

Source: marketscreener