Canadian Solar Solutions Inc., an operating division of
Canadian Solar Inc.
), struck a deal with a fund managed by DIF, whereby the latter
will purchase four utility-scale solar power plants in Ontario,
Canada. The agreement is subject to customary closing
The transaction is valued at par with other recent project
sales concluded by the company on a per megawatt basis in the
Ontario market. Totaling 40 megawatt AC ("MWAC"), the four plants
include "BeamLight" in Georgina, "Gold Light" in Pefferlaw,
"Illumination" in Scugog and "Glenarm" in Kawartha Lakes.
Construction work is expected to begin in 2013 and 2014 while
commercial startup is slated for 2014. Canadian Solar will offer
construction, procurement and turnkey engineering capabilities.
It will also offer operations and maintenance services after
The solar plants will be installed with roughly 190,000
Canadian Solar CS6X high-performance modules, which have been
through rigorous formal inspections and testing and are
internationally certified. The utility-scale solar plants will
adequately power around 7,000 homes.
This sale reflects Canadian Solar's recent strategic shift to
sell solar power plants rather than being confined to a
photovoltaic (PV) module manufacturer. The company is poised to
earn additional revenues from its sale of two utility-scale solar
plants to BlackRock in the near term.
Canadian Solar has already secured 1,015 MW of utility-scale
solar projects. Recently, the company chose, ABB Inc., to supply
a 100 MWAC turnkey solar PV power plant to the previously
announced Grand Renewable Energy Project in collaboration with
Samsung Renewable Energy Inc. and Connor Clark & Lunn
The demand upsurge for PV modules in China and Japan will act
as principal growth drivers for Canadian Solar. In addition, the
company plans to capture the emerging renewable market in the
Middle East and tap opportunities in the U.S.
Canadian Solar also hopes to benefit from a recovering solar
industry in Europe in 2014, chiefly driven by Germany, the U.K.,
Italy and France. Currently, the company carries a Zacks Rank #3
However, other solar operators looking more attractive include
Zacks Ranked #2 (Buy)
First Solar Inc.
Trina Solar Ltd
Enphase Energy, Inc.
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