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Canadian Solar (CSIQ) Completes 3.3 MWp Project Sale in UK

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Canadian Solar Inc. (CSIQ - Free Report) recently completed the divestiture of its 3.3 MWp Milborne Port project in the U.K. to Elm Trading Group. The solar module developer expects to recognize revenues from the sale in the fourth quarter of 2019.

A Brief Note on the Milborne Port Project

The Milborne Port project, located in Somerset, England, was the last subsidized operational project, accredited under the 1.2 Renewables Obligation Certificates (ROCs) subsidy regime. Canadian Solar started the commercial operation of this project in March 2017. The solar plant generates an estimated 3.3 GWh of clean electricity annually, enough to power approximately 1,062 households and offset 932 tons of carbon emissions each year.

Canadian Solar’s Expansion Plans in Europe & UK

In recent times, Canadian Solar started to develop a pipeline of unsubsidized projects in the U.K. and Europe, on a broader scale, with the cost of solar energy declining and reaching grid parity. In June, the company entered a contract to supply 500-megawatt (MW) solar modules to Solarcentury's projects — Cabrera and Talayuela Solar — in Spain. Both projects, on a combined basis, are anticipated to power 255,000 homes in Europe, on completion.

Evidently, the company strongly continues to focus on expanding its presence and supporting the growth of solar markets in Europe and the U.K.

The Global Rise of Solar Power Energy

Per a report from the International Renewable Energy Agency (IRENA), global electricity generation from solar energy is expected to increase to nearly 360 GW per year by 2050 from the current level of 109 GW. To reap the benefits of such overwhelming projections, solar players like Canadian Solar are making notable efforts to significantly expand footprint globally.

For instance, toward the end of the third quarter of 2019, SolarEdge Technologies (SEDG - Free Report) shipped a total of 1.5 Gigawatts (AC) of inverters, whereas SunPower Corp. (SPWR - Free Report) had more than 145 megawatts of storage pipeline. Moreover, JinkoSolar's (JKS - Free Report) in-house annual silicon wafer, solar cell and solar module production capacity totaled 14.5 GW at the end of the third quarter.

Price Movement and Zacks Rank

Canadian Solar’s shares have gained 8.8% in a month compared with the industry’s growth of 4.8%.

The company 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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