Canadian Solar Inc.
) subsidiary Canadian Solar Solutions Inc. has signed a contract
with a fund managed by
) to sell two utility-scale solar power plants. These projects
have a total electric generation capacity of 20-megawatt (MW) AC.
The plants are located at Demorestville and Odessa in Ontario,
Per the agreement, Canadian Solar will offer turnkey engineering,
procurement and construction services for the completion of the
projects. In addition, the company will also manage the projects'
operations and maintenance services. The company expects to
utilize approximately 95,890 Canadian Solar CS6X modules for
Canadian Solar started developing the power plants in
first-quarter and third-quarter 2013 and expects to complete by
fourth-quarter 2013 and second-quarter 2014, respectively. The
plants will provide emission-free power to approximately 3,340
As per the Ontario Power Authority contracts, the consumers will
get emissions free energy over a 20-year operational period from
the power plants.
Globally, utilization of renewable energy is rising primarily due
to its clean nature and a growing awareness among the masses
regarding its benefits. These influence utility providers to
shift their mode of power generation to solar, wind and water
from the traditional methods.
Canadian Solar is continuously receiving orders from domestic as
well as international clients for solar modules and other allied
services. The company gained the goodwill in terms of maintaining
product and service standards along with delivery timing.
Recently, Canadian Solar sold two projects, Brockville 2 and
Burritts Rapids, to
) with a value of above $92.2 million.
The company has a geographically-diversified customer base spread
across the North American and European markets, as well as
emerging markets in South Korea, Japan and China.
In Jul 2013, Canadian Solar completed 30 MW rooftop photovoltaic
(PV) installations in China's City of Suzhou under the country's
Golden Sun program.
We view this growing demand of solar powered energy as a catalyst
for Canadian Solar's forthcoming operating as well as financial
Canadian Solar currently has a Zacks Rank #3 (Hold). However,
) is currently performing well with a Zacks Rank #1 (Strong
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