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Canadian Solar to Build 130MW Solar Plant

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Canadian Solar Inc. (CSIQ - Free Report) has entered into an Engineering, Procurement and Construction (“EPC”) agreement with Grand Renewable Solar LP for the construction of a solar power plant in Ontario. This is the biggest EPC contract in the company’s history and will bring in C$310 million ($301.1 million) for the company.

The project developed by Samsung Renewable Energy Inc. will have an electric generation capacity of 130 megawatt (MW). By generating 165,000 MWh of electricity per year, the facility will power approximately 13,750 homes. Over a 20-year period, the plant is capable of eradicating 162,000 metric tons of carbon dioxide emissions.

These environmental advantages will be achieved with the help of approximately 440,000 CS6X high-performance Canadian Solar modules that will be installed on the plant. The high performance CS6X modules carry a warranty period of 10 years on materials and workmanship and a 25-year warranty on linear power output performance. With respect to quality control inspections and testing, these modules have received key international certifications.

Meanwhile, the project will fulfill its corporate social responsibility by creating several hundreds of direct and indirect green energy jobs during the development, construction and operation phases of the project.

In collaboration with Grand Renewable Solar, the company will begin the construction of the project in the third quarter of 2013. The project is expected to come on line in 2015.

Recently, the company’s CS6P-P series (60 cells, polycrystalline) and its monocrystalline MWT cell modules, and ELPS CS6P-MM series (60 MWT cells, monocrystalline) have cleared Fraunhofer ISE's PID test in accordance with the draft IEC62804.

Recently the company opened a sales and business development office in Sao Paulo, Brazil in order to expand and strengthen its South American sales network and broaden regional customer service capabilities.

Canadian Solar is a low-cost, vertically-integrated solar module producer with predominantly China-based manufacturing assets. The prospects for Canadian Solar look favorable based on a geographically-diverse customer base and improving operating efficiencies through its vertically-integrated manufacturing operation.

Moreover, as a result of major developments, the company’s share price has surged 50% to $10.16 on Jun 10, 2013 in the last one month making the stock more attractive.

Like Canadian Solar, other companies in the solar space are also looking up. Over the past one month, First Solar, Inc. (FSLR - Free Report) shares have experienced a 14.3% increase while JA Solar Holdings Co., Ltd. (JASO - Free Report) has experienced an increase of 44% over the same period. SunPower Corp. (SPWR - Free Report) stock also witnessed a boost of 19.1% over the last month. The rising share prices of the solar stocks thus indicate a bullish trend in the alternative energy space so far this year.

Currently, First Solar, JA Solar Holdings as well as SunPower carry a short-term Zacks Rank #3 (Hold).

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