Canadian Solar Inc.
) subsidiary Canadian Solar Solutions Inc. inked an Engineering,
Procurement, and Construction (EPC) deal with Kingston Solar LP to
build a 140-megawatt (MW) DC (100 MW AC) utility-scale solar energy
farm in Ontario, Canada. The new contract is considered the largest
Canadian EPC agreement.
Samsung Renewable Energy Inc. ("Samsung") developed a solar energy
project called Kingston Solar LP. Canadian Solar will utilize over
464,000 Canadian Solar Maxpower CS6X high-performance modules in
the solar farm. The company is scheduled to start the development
of the plant in third-quarter 2014. The plant is expected to be
operational in the third quarter of 2015.
The CS6X module demonstrates superior power output and higher
system reliability. This module cuts current transmission path
between cell fingers, decrease cell series resistance and improve
module conversion efficiency.
After the completion of the project, the plant will provide
emission-free power to approximately 16,409 homes annually. It will
lower carbon dioxide emission by roughly 119,292 metric tons per
year. Also, the project is expected to generate several new jobs
during its development and construction phase besides creating more
than 700 manufacturing jobs at Canadian Solar's manufacturing
Canadian Solar has strong business ties with Samsung as the company
has supported many of the latter's projects. This is Canadian
Solar's second EPC agreement relating to the solar ventures
constructed by Samsung. It corresponds to Phase II solar project
development followed by Phase I agreement related to building of
the 130-MW DC Grand Renewable Energy Park in Haldimand County,
totaling 300-MW AC, under Samsung's Green Energy Investment
In addition, in Mar 2014, Canadian Solar and Samsung jointly opened
a new manufacturing facility in London, Ontario. The facility
produces solar photovoltaic (PV) modules and Medium Voltage Power
Stations. The modules produced at the plant are delivered to
Samsung for its Grand Renewable Energy Park in Haldimand County and
the Sol-Luce Kingston Solar PV project in Kingston and Loyalist
It is evident from Canadian Solar's order book that its solar
modules are finding its way in projects ranging in size from a few
kilowatts to multi-megawatts in markets across the globe. In May
2014, Canadian Solar announced that it will supply PV modules to
the U.S. state of South Carolina's first solar farm, Colleton Solar
The latest agreement enables Canadian Solar to accumulate around
$280 million (C$300 million) as revenues. Canadian Solar's strategy
of winning solar module contracts besides signing EPC agreements
will enable the company to generate secured revenues. The company
can utilize these funds at several profitable ventures as well as
for other corporate activities.
Canadian Solar currently has a Zacks Rank #3 (Hold). However, some
better-ranked stocks in the same sector include
JA Solar Holdings Co., Ltd.
Covanta Holding Corporation
Yingli Green Energy Holding Co. Ltd.
). While JA Solar and Covanta carry a Zacks Rank #1 (Strong Buy),
Yingli Green holds a Zacks Rank #2 (Buy).
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JA SOLAR HOLDGS (JASO): Free Stock Analysis
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