Canadian Solar Inc. ( CSIQ Quick Quote CSIQ - Free Report) recently revealed that it secured a solar plus battery energy storage project named Zaldivar from Chile's Energy National Commission (CNE) in July 2022. The project, currently in mid-stage development, will have a generation capacity of 253 megawatt-peak (MWp) with a storage capacity of 1,000 megawatt-hours (MWh), once operational in 2026.
With an expected capacity to displace more than 263,000 tons of CO2 emissions each year, this project will put Chile a step ahead toward its target of achieving carbon neutrality by 2050.
Solar Prospects in Chile & Canadian Solar
The solar power market in Chile is booming significantly, thereby offering solid growth opportunities for solar players like Canadian Solar to expand their footprint in this nation. To this end, it is imperative to mention that the CNE has awarded a total of 777 GWh/year of new generation backed by three different new renewable projects in an auction to provide 5.25 GWh of electricity for the national system over a period of 15 years from 2027.
Impressively, Canadian Solar’s Zaldivar Project is one of these three projects. This surely positions this solar player in an advantageous position within Chile’s solar market. The company believes that the Zaldivar project will strengthen its leading position in Chile where Canadian Solar has a backlog of 600 MWp of solar projects and 2.2 GWh of battery storage projects.
Global Solar Market Boom
The increased focus on transitioning to renewable sources of energy has propelled the demand for solar-based energy not only in Chile but across the world. Moreover, due to its feature of a lower cost-oriented source of energy, its demand is poised to increase manifold amid rising energy prices.
In this context, per a Mordor Intelligence report, the global solar market is expected to witness a CAGR of 13.8% during the 2022-2027 period. This entails immense growth opportunities for solar companies like Canadian Solar, which has one of the world’s largest utility-scale solar project development platforms. It has a track record of bringing more than 6.6 GWp of solar power plants into commercial operation across six continents.
Opportunity for Peers
Solar players that have already carved out a position in the solar market and can further enjoy the perks of the pent-up demand are:
Enphase Energy ( ENPH Quick Quote ENPH - Free Report) : Its total shipments during the second quarter of 2022 amounted to approximately 1,213 megawatts-direct current (MWdc) or 3,348,553 microinverters. As of Jun 30, 2022, more than 48 million microinverters were shipped, while approximately 2.5 million Enphase residential and commercial systems were deployed in more than 140 countries.
ENPH currently boasts a long-term earnings growth rate of 47.1%. The stock has gained 100.6% in the past year.
ReneSola ( SOL Quick Quote SOL - Free Report) : The company owns 186 MW of operating projects as of Jun 30, 2022. In the second quarter of 2022, ReneSola connected about 3 MW of newly developed projects in Zhejiang, Jiangsu, Fujian, and Guangdong provinces in China.
The Zacks Consensus Estimate for SOL’s 2022 sales implies an improvement of 34.6% from the 2021 reported figure. The stock has gained 11.6% in the past three months.
JinkoSolar Holdings ( JKS Quick Quote JKS - Free Report) : Its second-quarter 2022 shipments were 10,532 MW which went up 25.5% sequentially and 102.4% year over year. As of Jun 30, 2022, the company's annual production capacity for mono wafer, solar cell and solar module totaled 43.0 GW, 42.0 GW and 50.0 GW, respectively.
The Zacks Consensus Estimate for JKS’ 2022 sales implies an improvement of 52.9% from the 2021 reported figure. The company boasts a four-quarter average earnings surprise of 170.74%.
In the past year, shares of Canadian Solar have rallied 20.3% compared with the
industry’s growth of 17.4% Image Source: Zacks Investment Research Zacks Rank
Canadian Solar currently carries a Zacks Rank #2 (Buy). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here