Canadian Solar Inc. (CSIQ) announced that its e‑STORAGE subsidiary will deliver a 204 MW/408 MWh battery energy storage system to Vena Energy for the Tailem Bend 3 project in South Australia. The system will comprise nearly 100 SolBank 3.0 battery containers and will be installed as a turnkey EPC solution, with a five‑year long‑term service agreement that will see e‑STORAGE maintain the battery system through its projected 2027 start‑up.
The win is a key milestone for e‑STORAGE, which has built 2 GWh of battery storage in Australia and now brings its total Australian footprint to roughly 2 GWh, including this new project. The contract adds a substantial 408 MWh of capacity to the company’s backlog, which stood at $3.1 billion as of October 31, 2025, and reinforces the segment’s momentum after a record 2.7 GWh of shipments in Q3 2025. The high‑margin nature of the battery business is reflected in e‑STORAGE’s gross margin of 17.2% in the same quarter, driven by strong demand and efficient scale.
The SolBank 3.0 platform is a modular, high‑energy‑density solution that can be deployed quickly and safely. The EPC contract includes design, procurement, construction, and commissioning, while the five‑year service agreement provides a recurring revenue stream that aligns with Canadian Solar’s strategy to lock in long‑term cash flows. The project’s 204 MW power rating and 408 MWh energy rating will enable Vena Energy to smooth intermittent wind and solar output, improving grid reliability in a state that already hosts the world’s largest battery, the Hornsdale Power Reserve.
South Australia’s aggressive renewable‑energy targets have created a robust market for utility‑scale storage. The state’s grid now relies on battery projects to mitigate the variability of wind and solar generation, and the Tailem Bend 3 project will add critical capacity to the region’s energy mix. The project also positions Canadian Solar against competitors such as Sungrow and Neoen, who are active in the same market, and underscores the company’s growing presence in a high‑growth region for battery storage.
Financially, the contract is expected to contribute to Canadian Solar’s revenue and margin profile in the coming years. While the exact financial terms are undisclosed, the addition of a 408 MWh system to the backlog signals continued demand for e‑STORAGE’s solutions and supports the company’s broader goal of expanding its energy‑storage portfolio. Management has highlighted the contract as evidence of the segment’s resilience and the company’s ability to secure high‑value, long‑term agreements that enhance profitability and cash‑flow stability.
Canadian Solar’s CEO and CFO have emphasized that the energy‑storage business is a cornerstone of the company’s growth strategy. The CEO noted that “the Tailem Bend 3 win demonstrates our ability to deliver integrated solar‑storage solutions that meet the evolving needs of utilities in renewable‑heavy markets.” The CFO added that the contract will help sustain the company’s gross‑margin trajectory while providing a predictable revenue stream that supports future capital investments in U.S. manufacturing facilities for both solar cells and battery storage.
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