Canadian Solar Solutions Inc., a unit of Canadian Solar Inc. ( CSIQ ), has sold the 10-megawatt (MW) alternating current (AC) Mighty Solar power plant (Mighty Solar) to Concord Green Energy's (Concord) affiliate One West Holdings Ltd. for $54.9 million (C$60 million). The plant is located in the town of Chesterville, Ontario, Canada.
The Mighty Solar plant was the second of five utility-scale solar projects to be sold to Concord as per a contract signed by Canadian Solar and Concord on Aug 5, 2013. Per the agreement, Canadian Solar will sell five utility-scale solar power plants with a total generation capacity of 49 MW AC to Concord. Once completed, Ontario Power Authority will purchase the power generated from these plants under a 20-year agreement.
Canadian Solar had completed the sale of the first solar project, Val Caron, under this agreement in Jul 2014. The 10-MW AC solar farm is sited in the city of Greater Sudbury, Ontario. A lineup of downstream purchase sales contracts ensures a steady cash inflow for Canadian Solar.
Canadian Solar has a strong track record of providing products and services to its customers on time, which helps it to maintain a stable order book. On Aug 20, 2014, the company sold the 10-MW AC Good Light Solar Power Plant to a subsidiary of BluEarth Renewables Inc. for $60.3 million.
In another transaction, on Aug 5, Canadian Solar delivered 4 MW of solar photovoltaic (PV) modules for the Spanish Town Estate Solar project, based in St. Croix. The solar project has been acquired by NRG Energy Inc. ( NRG ).
In addition to expanding operations in North America, Canadian Solar has also taken several initiatives to strengthen its footprint in other geographies. Recently, the company announced that its subsidiary will team up with Sichuan Development Investment Management Ltd. along with third party investors to form an investment fund, worth $800 million, in China. The purpose of this plan is to promote construction, development and ownership of utility-scale and distributed generation solar power projects in Sichuan Province, China and other locations in the country.
Canadian Solar currently holds a Zacks Rank #1 (Strong Buy). Other stocks in the same sector worth considering include ReneSola Ltd. ( SOL ) and Enphase Energy, Inc. ( ENPH ). ReneSola sports a Zacks Rank #1 (Strong Buy) while Enphase Energy carries a Zacks Rank #2 (Buy).
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