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Canadian Solar (CSIQ) Wins 110 MW Solar Projects in Brazil

Canadian Solar Inc.CSIQ announced that it has secured a power supply contract for three solar photovoltaic ("PV") projects, with a total capacity of 110 megawatt-peak ("MWp"), located in Pirapora in the Brazilian state of Minas Gerais.

Per the contract, Canadian Solar will develop and construct these three plants. Under a 20-year Power Purchase Agreement ("PPA"), once connected to the grid, the company will sell the electricity generated from these facilities at roughly $78.8 per megawatt-hour to Camara de Comercializacao de Energia Eletrica.

The company aims to commence commercial operation of the projects by 2018-end. With this contract, Canadian Solar's pipeline in Brazil has now increased to 384 MWp.

According to the company, the latest contract speaks volumes about its solar capabilities and consolidates its position in the global solar power market.

The Brazilian government awarded over 1,477.5 MW of wind and solar power supply contracts in last week's auction. Among these, as many as 33 solar projects totaling 929.34 MW were sold.

In Sep 2015, Canadian Solar secured five solar PV projects totaling 185 MW in a previous solar-only reserve auction held in Brazil. These projects are located in Pirapora as well. Canadian Solar will develop and construct these solar plants. Once these plants are connected to the grid, the company will sell the electricity generated to a Brazilian government entity for approximately $84/MWh under a 20-year PPA.

Ontario, Canada-based Canadian Solar has a significant presence in Brazil and continues to expand its operations in this growing solar energy market. During the third-quarter, the company has won five bids for projects totaling 184 MW, which are expected to be connected to the grid in 2017.

Canadian Solar caters to a geographically diverse customer base spread across key markets. The company also has a strong pipeline of projects. Recently, the company reported third-quarter 2015 earnings of 79 cents per share and revenues of $849.8 million. Of the total revenue, the American markets comprised 52.6%, Asia and other markets represented 41.3%, and the European markets contributed 6.1% compared with the respective contributions of 71.7%, 20.4% and 7.9% in the year-ago quarter.

Zacks Rank

Canadian Solar currently has a Zacks Rank #2 (Buy). JA Solar Holdings Co., Ltd. JASO , ReneSola Ltd. SOL and First Solar, Inc. FSLR are other favorably placed stocks in the solar industry. While JA Solar sports a Zacks Rank #1 (Strong Buy), ReneSola and First Solar carry the same rank as Canadian Solar.

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JA SOLAR HOLDGS (JASO): Free Stock Analysis Report

CANADIAN SOLAR (CSIQ): Free Stock Analysis Report

FIRST SOLAR INC (FSLR): Free Stock Analysis Report

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

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


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

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