Canadian Solar Solutions Inc., an operating division of
Canadian Solar Inc.
), struck a deal with a fund managed by
), whereby the latter will purchase a 10-megawatt (MW)
utility-scale solar farm in Ontario, Canada. The transaction is
valued at par with other recent project sales concluded by the
company on a per megawatt basis in the Ontario market.
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Construction work has already begun at the Westbrook power plant
while commercial startup is slated for the second quarter of
2014. Canadian Solar will offer turnkey engineering, procurement
and construction ("EPC") services. It will also offer operations
and maintenance services after project completion.
The solar plant will install roughly 47,160 Canadian Solar CS6X
high-performance modules, which have been through rigorous formal
inspections and testing and are internationally certified. The
plant will provide emission-free power to approximately 1,650
homes annually. Per the Ontario Power Authority contract, the
consumers will get emission free energy over a 20-year
operational period from the power plant.
This and similar sales reflect a recent trend among solar module
makers to venture into the more profitable solar project
generation business. The company is poised to earn additional
revenues from its sale of the Westbrook solar plant to BlackRock
in the near term.
The latest deal follows two more utility-scale solar power plants
-Demorestville and Taylor Kidd - sold to BlackRock in Sep
2013. Those two projects have a total electric generation
capacity of 20 MW AC. The plants are located at Demorestville and
Odessa in Ontario, Canada.
With the rapid uptake of renewable energy due to its clean nature
and increasing awareness among the masses regarding its benefits,
the utility providers are gradually shifting their power
generation mode to solar, wind and water from traditional
methods. This bodes well for solar companies like Canadian Solar,
which are continuously diversifying their customer base
geographically, across the North American and European markets,
as well as the emerging markets of South Korea, Japan and China.
We view this growing demand for solar powered energy as a
catalyst for Canadian Solar's forthcoming operating as well as
Canadian Solar currently has a Zacks Rank #3 (Hold). However,
First Solar Inc.
Trina Solar Limited
) are better ranked with a Zacks Rank #1 (Strong Buy).