CSIQ to Sell Solar Plants to Concord - Analyst Blog

By Zacks Equity Research,

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Canadian Solar Solutions Inc., a subsidiary of Canadian Solar Inc. ( CSIQ ), has entered into a sales agreement worth $277 million with Concord Green Energy ("Concord"). Per the agreement, Concord will buy Canadian Solar's five utility-scale solar power plants that have a total generation capacity of 49 megawatt (MW) alternating current (AC). Per a 20-year contract, Ontario Power Authority will buy the electricity generated from these plants.

Located in Chesterville, Pefferlaw, Springwater, Sudbury and Wyebridge, these solar power plants will have the capacity to provide electricity to 8,713 homes. The project will displace 1,164,120 metric tons of carbon dioxide emissions. Also, the project is expected to create more than 500 new jobs during the development and construction phases of all five solar projects.

These plants are slated to commence construction by this year and the next and come online in 2014. However, Canadian Solar will continue to provide turnkey engineering, procurement and construction ("EPC") services to complete the construction of the plants. The company will install approximately 236,000 of its CS6X high-performance modules. Post completion, the company will provide operations and maintenance services.

Canadian Solar caters to a geographically-diverse customer base spread across its key markets in Germany, Spain and the U.S., as well as emerging market opportunities in France, the Czech Republic, Italy, South Korea, Canada, Japan and China. Canadian Solar is a vertically-integrated manufacturer. The company's China based manufacturing assets give it a distinct cost advantage over its peers. Recently, the company completed 30 MW rooftop PV installations in China's City of Suzhou under the country's Golden Sun program.

The current agreement has led to an 11.6% surge in Canadian Solar's share price to $15.75 versus the last traded price. Other stocks in the solar industry that are experiencing climbing stock prices include JA Solar Holdings Co., Ltd. ( JASO ), ReneSola Ltd. ( SOL ) and Yingli Green Energy Holding Company Limited ( YGE ).  JA Solar Holdings share price surged 4.2% to $8.75 after the announcement of securing a credit line from a Chinese bank on Aug 5, 2013.

ReneSola recently announced that it will provide microinverters, string inverters and mounting products to a new client in Pakistan. Only last month, Yingli Green Energy entered into an agreement with RE FIT Solution Sdn. Bhd. to supply 500 KW of multi crystalline PV modules for the residential market in Malaysia.

These developments have led to a 4.92% increase in ReneSola's share price versus the last traded price. Yingli Green Energy also experienced a 3.4% increase from the last traded price. In fact, the alternative energy space is doing extremely well so far in 2013 on the back of bullish data from the solar companies.

CANADIAN SOLAR (CSIQ): Free Stock Analysis Report

JA SOLAR HOLDGS (JASO): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

YINGLI GREEN EN (YGE): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: CSIQ , JASO , SOL , YGE

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