A Canadian Solar Inc. (CSIQ - Free Report) unit – Canadian Solar Solutions Inc. – has completed the sale of two projects, Brockville 2 and Burritts Rapids, to TransCanada Corporation (TRP - Free Report) . Canadian Solar sold the projects for more than $92.2 million (C$95.0 million).
These projects have a total electric generation capacity of 16.0 megawatts (MW) AC and are among the nine projects that TransCanada agreed to buy back in 2011. The nine projects comprising 86 MW of solar farms will cost about C$470 million.
Located in the city of Brockville in Eastern Ontario, the Brockville 2 solar power plant has a capacity of 9.0 MW AC, while the Burritts Rapids plant, in the city of Ottawa in Eastern Ontario, totals 7.0 MW.
In June, Canadian Solar completed the sale of Brockville 1, a 10 MW AC solar power plant, to TransCanada for $52.2 million. This was the first of the nine solar plants planned for sale.
Canadian Solar caters to a geographically-diverse customer base spread across its key markets in Germany, Spain and the U.S., as well as emerging market opportunities in France, the Czech Republic, Italy, South Korea, Canada, Japan and China. Canadian Solar is a vertically-integrated manufacturer.
The company’s China based manufacturing assets give it a distinct cost advantage over its peers. Recently, the company completed 30 MW rooftop PV installations in China's City of Suzhou under the country's Golden Sun program.
Meanwhile, solar energy stocks are moving sharply higher. After a lackluster 2012, solar stocks were buoyed by proactive solar programs adopted by many countries this year. The Indian government has set a solar capacity target of 10 gegawatt (GW) by 2017 while China has set a goal of 35 GW of solar power by 2015. This has driven the recent rally in the solar space.
Canadian Solar, in particular, gained 2.1% in daily trading on Oct 2 to end the day at $18.56 a share. The company’s other major source of revenue is the implementation of solar power development projects worldwide.
Other stocks in the solar industry that are climbing higher include JA Solar Holdings Co. Ltd. (JASO - Free Report) , First Solar Inc. (FSLR), Yingli Green Energy Holding Company Limited (YGE - Free Report) and ReneSola Ltd. (SOL).
Canadian Solar presently retains a Zacks Rank #3 (Hold). However, other stocks that are worth considering in the solar space are ReneSola and JA Solar, with a Zacks Rank #2 (Buy).