First Solar Inc.
) has entered into an agreement with Southern Power and Turner
Renewable Energy, a subsidiary of
), to sell its 139-megawatts (MW) Campo Verde Solar Project. Per
the contract, First Solar will construct the power plant and will
operate and manage it for 10 years.
First Solar started developing the power plant last December and
is expected to bring it online by fall 2013. The plant is
expected to provide power to approximately 48,000 homes annually.
At the same time, it will reduce carbon dioxide emission by
80,000 metric tons per year. Southern Power and Turner Renewable
Energy will sell the output to San Diego Gas & Electric
Company over the next 20 years.
First Solar has been a committed partner of Southern Power and
Turner Renewable Energy in terms of meeting its commitments and
maintaining product and service standards along with delivery
timing. In 2010, the company sold the 30-MW Cimarron I Solar
Project to Southern Power and Turner Renewable Energy.
In Aug 2005, the U.S Environmental Protection Agency circulated a
regulation that each of the federal agencies will consume
renewable energy in amounts of not less than 7.5% in 2013 and
afterward. Currently, most of the utility providers invest
substantial amounts to develop and upgrade their renewable
utility assets to meet the environmental legislations.
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.
First Solar is continuously receiving orders from domestic as
well as international clients for solar modules and other allied
services. In 2012, the company inked several deals with Chinese,
Indian and Indonesian organizations.
We view this growing demand of solar powered energy as a catalyst
for First Solar's future operating as well as financial results.
First Solar currently has a Zacks Rank #3 (Hold). Besides the
company, the Zacks Rank #2 (Buy) stocks of
STR Holdings, Inc.
) are worth considering.
FIRST SOLAR INC (FSLR): Free Stock Analysis
SOUTHN COMPANY (SO): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
STR HOLDINGS (STRI): Free Stock Analysis
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