Global solar panel manufacturer,
Suntech Power Holdings Co., Limited
) announced that it will deliver 100 megawatts (MW) of solar
panels for the two planned projects in South Africa undertaken by
a syndicate steered by Mainstream Renewable Power.
The solar plants are the first projects to get licenses under
South Africa's ambitious Renewable Energy Independent Power
Producer Programme ("REIPP"). The plants will be developed at two
individual sites in the Northern Cape of South Africa.
Munich-based electronics and engineering conglomerate,
) will overlook the design and construction aspects of the dual
solar program. The plants are anticipated to come online by
The REIPP program plans to install around 1.45 Gigawatt ("GW")
and 8.2 GW of solar plants by late 2014 and 2030, respectively.
The current project will employ Suntech's V series module which
goes well with utility-scale power plants. In addition, the solar
systems will generate production capacity of 180 gigawatt-hours
which will adequately power roughly 15,000 homes. The
eco-friendly programs are expected to displace about 180,000 tons
of carbon emissions per year.
Suntech's aim at expanding its business footprint overseas and
converting its existing domestic manufacturing bases into
cost-effective units will certainly lend constancy to its
earnings, going forward.
Suntech has been supplying its proprietary solar panels to
customers round the world. Lately the company supplied solar
panels for a 44-MW, collaborative solar plant in Bangkok to
Bangchak Public Petroleum Co. Ltd. The company also won a
contract from Portugal's EDP Renovaveis for the supply of 39 MW
of polycrystalline solar panels.
These high-quality programs will strengthen its presence in
the global solar market. However, tariff headwinds and
anti-subsidy tariffs of 2.9% to 4.73% imposed in March 2012 by
the U.S. government will constrict its opportunities to tap the
growing renewable U.S. market. The company currently retains a
short-term Zacks #3 Rank (Hold rating).
Another Zacks #3 Ranked solar player,
) is also strengthening its position worldwide with back-to-back
contract wins for the supply of solar modules to Kiran Energy
Solar Power Pvt. Ltd. and Mahindra Solar One Pvt. Ltd., both
based out of India. FirstSolar is also engaged in the building of
a 13-MW solar photovoltaic ("PV") power plant in Seih Al Dahal in
For Suntech, the Zacks Consensus Estimates for the fourth
quarter and full year 2012 are currently pegged at a loss of 44
cents and $2.33 per share, respectively. The cascading prices of
PV modules, across the industry, owing to a supply glut will take
its toll on the company's margins.
With a market capitalization of $157.44 million, the Wuxi,
China-based solar company has 17,693 total employees.
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