) has sold its Kalaeloa solar farm to a consortium of buyers
including D. E. Shaw Renewable Investments, L.L.C. ("DESRI") and
Bright Plain Renewable Energy, L.L.C. ("BPRE").
HAWAIIAN ELEC (HE): Free Stock Analysis
SUNPOWER CORP-A (SPWR): Free Stock Analysis
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Based in West Oahu, Hawaii, Kalaeloa solar farm has a power
generation capacity of 5-megawatt ("MW"). SunPower started
construction of this project in July 2012 and intends to complete
it by the end of full-year 2012. The electricity generated from
the plant will be sold to
Hawaiian Electric Industries Inc.
) under a 20-year fixed-price agreement.
In August 2005, the U.S Environmental Protection Agency ("EPA")
circulated a regulation that each of the federal agencies will
consume renewable energy in amounts of not less than 7.5% in 2013
and afterwards. Currently, most of the utility providers invest
substantial amounts for developing and upgrading their renewable
emission-free utility assets to meet the environmental
Moreover, the company is also installing high-efficiency solar
panels. This operation is located on a 36 acres land, which is
owned by the State of Hawaii Department of Hawaiian Home Lands.
The tracker system in place will direct the solar panels towards
the sun's movement during the day and increases the sunlight
confinement capacity by approximately 25% over conventional
fixed-tilt structures. Additionally, the current acquisition of
this solar project would help Hawaii in meeting the EPA standards
Globally, demand for renewable energy is rising primarily due to
its clean nature, increasing prices of fossil-fuels, and growing
awareness among the masses regarding the benefits of renewable
energy. This fact compels the utility providers to shift their
mode of power generating operations to wind, solar and water from
coal, oil and natural gas.
SunPower is receiving continuous sale-orders from domestic as
well as international clients. In October 2012, SunPower sold its
1-MW Uterne solar project to Australian renewable energy provider
Epuron. This venture was developed by SunPower with the help of
Power and Water Corporation under a 20-year solar power purchase
We view this higher demand of solar powered energy as a positive
catalyst for SunPower's future operating as well as financial
results. SunPower currently retains a short-term Zacks #2 Rank
San Jose, California-based SunPower Corporation is a
vertically-integrated solar manufacturer, with a presence along
the entire solar value chain from cells through installation.
With a market capitalization of $541.66 million, the company has
5,220 full time employees.