Canadian Solar Inc.’s (CSIQ - Free Report) subsidiary Canadian Solar Solutions Inc. has signed a contract with a fund managed by BlackRock, Inc. (BLK - Free Report) to sell two utility-scale solar power plants. These projects have a total electric generation capacity of 20-megawatt (MW) AC. The plants are located at Demorestville and Odessa in Ontario, Canada.
Per the agreement, Canadian Solar will offer turnkey engineering, procurement and construction services for the completion of the projects. In addition, the company will also manage the projects’ operations and maintenance services. The company expects to utilize approximately 95,890 Canadian Solar CS6X modules for these projects.
Canadian Solar started developing the power plants in first-quarter and third-quarter 2013 and expects to complete by fourth-quarter 2013 and second-quarter 2014, respectively. The plants will provide emission-free power to approximately 3,340 homes annually.
As per the Ontario Power Authority contracts, the consumers will get emissions free energy over a 20-year operational period from the power plants.
Globally, utilization of renewable energy is rising primarily due to its clean nature and a growing awareness among the masses regarding its benefits. These influence utility providers to shift their mode of power generation to solar, wind and water from the traditional methods.
Canadian Solar is continuously receiving orders from domestic as well as international clients for solar modules and other allied services. The company gained the goodwill in terms of maintaining product and service standards along with delivery timing. Recently, Canadian Solar sold two projects, Brockville 2 and Burritts Rapids, to TransCanada Corporation (TRP - Free Report) with a value of above $92.2 million.
The company has a geographically-diversified customer base spread across the North American and European markets, as well as emerging markets in South Korea, Japan and China.
In Jul 2013, Canadian Solar completed 30 MW rooftop photovoltaic (PV) installations in China's City of Suzhou under the country's Golden Sun program.
We view this growing demand of solar powered energy as a catalyst for Canadian Solar’s forthcoming operating as well as financial performance.
Canadian Solar currently has a Zacks Rank #3 (Hold). However, SunPower Corporation (SPWR - Free Report) is currently performing well with a Zacks Rank #1 (Strong Buy).