EDF Renewable Energy (EDF RE) announced that it acquired two solar projects from First Solar Inc. (FSLR - Free Report) . The Switch Station 1 and Switch Station 2 Solar Projects are presently under construction and have a capacity to generate 179 Megawatt (MW) of clean energy. The projects will come online in late July and September this year, respectively.
Both the projects are being developed using First Solar modules on horizontal single-axis trackers. The output from these projects will be sold to subsidiaries of NV Energy, Inc. under three power-purchase agreements.
Acquisition of these solar projects marks EDF Renewable Energy’s entry in Nevada and strengthens its long-standing business partnership with First Solar.
This is the second solar project First Solar has sold in Nevada this year. In Mar 2017, First Solar sold its 250 MW Moapa Southern Paiute Solar Project to global private asset manager, Capital Dynamics. First Solar will continue to operate and maintain the power plant for Capital Dynamics.
What Lies Ahead For Solar
A recent release from the U.S. Energy Information Administration (EIA) forecasts that large-scale solar projects in the U.S. will have the capacity to touch 32 gigawatts (GW) in 2018, up nearly 45.5% from 2016 levels of 22 GW. EIA also forecasts an increase in the small-scale solar capacity.
First Solar has been a steady performer and is gaining further momentum with the increasing demand for solar energy in the U.S. and across the globe. First Solar has been involved in the installation of more than 17 GW solar projects globally.
Road Ahead for First Solar
Apart from increasing its footprints in domestic markets, First Solar has solid presence in the market in India. The country aims to add 100 GW of solar capacity to its system by 2022.
The company’s modules have already helped to power 1.3GW of solar projects in the region. It presently has an excess of 110 MW projects under development in India. Without any doubt, the strong demand for solar products in India could make it one of the most lucrative markets for First Solar.
The solar market in India is already very competitive due to the presence of Chinese solar companies like ReneSola (SOL - Free Report) , JA Solar Holdings (JASO - Free Report) and JinkoSolar Holding Co., Ltd. (JKS - Free Report) , among others.
However, we believe the company’s continuous research and development activities to better the quality of its offering will be the driving factor. It will help First Solar achieve a competitive edge over its peers in the solar industry space.
Shares of First Solar have increased 29.5% year to date compared with the Zacks categorized Solar industry’s gain of 26.4%.
Steady performance and sell of some of First Solar’s upcoming solar projects are going to drive performance of this company.
First Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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