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Canadian Solar (CSIQ) Arm Gets $51M Financing for Horus Project
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Canadian Solar Inc.’s (CSIQ - Free Report) subsidiary, Recurrent Energy, recently secured non-recourse project financing worth $51 million for its 119-megawatt (MW) Horus solar project located in Mexico. Such developments should strengthen CSIQ’s footprint in the country’s solar market.
The financing has been done by two entities - Korea Eximbank, which is providing a $43 million facility and KEB Hana Bank, which is offering $8 million.
Details of the Project
The Horus Solar project has joint ownership, with Recurrent Energy constituting 49% of the project. The project, which achieved commercial operations in March 2023, is equipped with Canadian Solar's high-efficiency BiHiku bifacial modules.
Per a power purchase agreement awarded during Mexico's third renewable energy auction, the Horus project will sell 75% of electricity generated for 15 years and clean energy certificates for 20 years. The remaining 25% will be sold on the spot market.
Canadian Solar’s Prospects in Mexico
Mexico’s solar market provides significant growth opportunities, primarily due to increased investment and deployment of solar plants and various government policies favoring development. According to a report by Mordor Intelligence firm, the Mexican solar market is poised to witness a CAGR of 8.9% in the 2024-2029 period.
Such solid market growth opportunities in Mexico’s solar industry should boost Canadian Solar, which already enjoys a strong presence in this market.
In third-quarter 2023, Canadian Solar’s 12% revenues came from the Latin America region, which includes Mexico. As of Sep 30, 2023, CSIQ had 684 megawatt-peak (MWp) solar power plants in operation, with a solar development project pipeline totaling 5,358 MWp in Latin America.
Global Solar Scenario
The solar market is expanding rapidly, not just in Mexico but in the entire world. This is driven by several factors like solid installation activities, falling prices of solar installation, favorable policies undertaken by governments and the steadily increasing household electricity bills from conventional energy sources. To this end, the Mordor Intelligence firm projects the global solar energy market size in terms of installed base to witness a CAGR of 28.82% in the 2024-2029 period.
This should benefit Canadian Solar, which has a strong presence in the global solar industry, spanning 30 countries with more than 26 manufacturing facilities in Asia and the Americas.
Other solar majors that are steadily expanding their footprint in global solar markets are discussed below.
Enphase Energy (ENPH - Free Report) : Enphase Energy has a strong global presence ranging from the United States, Europe and Australia to India, Puerto Rico and Central America. As of Dec 31, 2023, the company had shipped more than 73 million microinverters and approximately 4 million Enphase systems in more than 150 countries.
ENPH’s long-term (three-to five-years) earnings growth rate is 17.3%. The firm delivered an average earnings surprise of 7.24% in the last four quarters.
SolarEdge (SEDG - Free Report) : The company has a strong presence in Germany, the United Kingdom, Switzerland, South Africa and Thailand, apart from its solid footprint in the United States. In 2023, SolarEdge shipped 12.63 GW of energy globally, with 66% of this coming from the European region.
SEDG boasts a long-term earnings growth rate of 14.8%. Its share price has surged 62.5% in the past five years.
First Solar (FSLR - Free Report) : The company is steadily expanding its footprint globally by enhancing its manufacturing capacity. It expects to exit 2026 with 25 GW nameplate capacity, including 14 GW in the United States.
The Zacks Consensus Estimate for FSLR’s 2024 sales implies a rise of 35.5% over 2023’s reported figure. The stock delivered an average earnings surprise of 14.16% in the last four quarters.
Price Performance
In the past six months, shares of CSIQ have lost 25.5% compared with the industry’s 25.8% decline.
Image Source: Zacks Investment Research
Zacks Rank
Canadian Solar currently has a Zacks Rank #4 (Sell).
Image: Bigstock
Canadian Solar (CSIQ) Arm Gets $51M Financing for Horus Project
Canadian Solar Inc.’s (CSIQ - Free Report) subsidiary, Recurrent Energy, recently secured non-recourse project financing worth $51 million for its 119-megawatt (MW) Horus solar project located in Mexico. Such developments should strengthen CSIQ’s footprint in the country’s solar market.
The financing has been done by two entities - Korea Eximbank, which is providing a $43 million facility and KEB Hana Bank, which is offering $8 million.
Details of the Project
The Horus Solar project has joint ownership, with Recurrent Energy constituting 49% of the project. The project, which achieved commercial operations in March 2023, is equipped with Canadian Solar's high-efficiency BiHiku bifacial modules.
Per a power purchase agreement awarded during Mexico's third renewable energy auction, the Horus project will sell 75% of electricity generated for 15 years and clean energy certificates for 20 years. The remaining 25% will be sold on the spot market.
Canadian Solar’s Prospects in Mexico
Mexico’s solar market provides significant growth opportunities, primarily due to increased investment and deployment of solar plants and various government policies favoring development. According to a report by Mordor Intelligence firm, the Mexican solar market is poised to witness a CAGR of 8.9% in the 2024-2029 period.
Such solid market growth opportunities in Mexico’s solar industry should boost Canadian Solar, which already enjoys a strong presence in this market.
In third-quarter 2023, Canadian Solar’s 12% revenues came from the Latin America region, which includes Mexico. As of Sep 30, 2023, CSIQ had 684 megawatt-peak (MWp) solar power plants in operation, with a solar development project pipeline totaling 5,358 MWp in Latin America.
Global Solar Scenario
The solar market is expanding rapidly, not just in Mexico but in the entire world. This is driven by several factors like solid installation activities, falling prices of solar installation, favorable policies undertaken by governments and the steadily increasing household electricity bills from conventional energy sources. To this end, the Mordor Intelligence firm projects the global solar energy market size in terms of installed base to witness a CAGR of 28.82% in the 2024-2029 period.
This should benefit Canadian Solar, which has a strong presence in the global solar industry, spanning 30 countries with more than 26 manufacturing facilities in Asia and the Americas.
Other solar majors that are steadily expanding their footprint in global solar markets are discussed below.
Enphase Energy (ENPH - Free Report) : Enphase Energy has a strong global presence ranging from the United States, Europe and Australia to India, Puerto Rico and Central America. As of Dec 31, 2023, the company had shipped more than 73 million microinverters and approximately 4 million Enphase systems in more than 150 countries.
ENPH’s long-term (three-to five-years) earnings growth rate is 17.3%. The firm delivered an average earnings surprise of 7.24% in the last four quarters.
SolarEdge (SEDG - Free Report) : The company has a strong presence in Germany, the United Kingdom, Switzerland, South Africa and Thailand, apart from its solid footprint in the United States. In 2023, SolarEdge shipped 12.63 GW of energy globally, with 66% of this coming from the European region.
SEDG boasts a long-term earnings growth rate of 14.8%. Its share price has surged 62.5% in the past five years.
First Solar (FSLR - Free Report) : The company is steadily expanding its footprint globally by enhancing its manufacturing capacity. It expects to exit 2026 with 25 GW nameplate capacity, including 14 GW in the United States.
The Zacks Consensus Estimate for FSLR’s 2024 sales implies a rise of 35.5% over 2023’s reported figure. The stock delivered an average earnings surprise of 14.16% in the last four quarters.
Price Performance
In the past six months, shares of CSIQ have lost 25.5% compared with the industry’s 25.8% decline.
Image Source: Zacks Investment Research
Zacks Rank
Canadian Solar currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.