Suntech Power Holdings Company Ltd. has entered into an agreement with Italian solar engineering, procurement and construction (“EPC”) company, SunSystem S.p.A. to deliver 25 megawatts (“MW”) of polycrystalline solar panels. These solar panels are suitable for the large-scale commercial projects and roof-top installations with an estimated generation capacity of 30,000 MW-hours of electricity per year. The project is expected to come online by 2013.
Per the agreement, these power plants will be operated by SunSystem and expanded by its Romanian unit RoEnergy. The newly installed solar panels will provide power to two new Romanian photovoltaic (”PV”) projects. These power plants will operate with Suntech's 60-cell polycrystalline modules and STP 245-20/Wd that has an improved frame design and conversion efficiency of more than 15%.
Globally, demand for renewable energy is rising primarily due to its clean nature, increasing prices of fossil-fuels, and growing awareness among the masses regarding the benefits of renewable energy. This fact compels the utility providers to shift their mode of power generating operations to wind, solar and water from coal, oil and natural gas.
Suntech aims to capitalize this opportunity and expand its overseas business footprint while foraying with international solar EPC players. The company has been supplying solar panels to customers across the globe. Few days earlier, the company signed a contract with a consortium led by Mainstream Renewable Power in South Africa to deliver 100 MW of solar panels for the two planned projects in South Africa.
These kinds of high-quality solar infrastructure orders will strengthen Suntech’s presence in the global solar market. We consider this as a positive catalyst for the company’s future growth.
In addition, the company continues to convert its existing domestic manufacturing bases into cost-effective units, which will subsequently improve its forthcoming earnings.
Another solar player FirstSolar Inc. (FSLR - Free Report) is also busy in expanding its global footprint with back-to-back contract wins for the supply of solar modules to Kiran Energy Solar Power Pvt. Ltd. and Mahindra Solar One Pvt. Ltd., both based in India. In addition, the company is also engaged in the building of a 13-MW solar photovoltaic power plant in Seih Al Dahal in Dubai.
Wuxi, China-based Suntech Power Holdings Company Ltd. is a solar energy company that designs, develops, manufactures and markets a variety of PV products, including a broad range of value-added building-integrated photovoltaic products. The company manufactures silicon wafers and ingots used in manufacturing its PV cells and modules. With a market capitalization of $173.73 million, Suntech has 17,693 full-time employees.