Quanta Services, Inc. (PWR - Free Report) through its subsidiary, Quanta Power Generation, Inc., received an engineering, procurement and construction contract from Con Edison Development (CED) for two of its photovoltaic (PV) facilities. The total capacity of the facilities is about 40 megawatts (MWac) located in Kings and Tulare counties, California.
Two special purpose entity (SPE) subsidiaries of CED, SPS White River LLC and SPS Corcoran LLC, are involved in this contract. The scope of work for Quanta Services includes of the complete design, engineering, procurement and installation services for all equipment required for the two 20MWac projects. About 176,000 polycrystalline PV solar modules will be mounted to a single-axis tracking system for both the facilities. The area covered by these facilities is more than 350 acres.
From Oct 2012, the pre-construction activity on the project was started while the project is scheduled to be completed in 2013. New job opportunities will be created through the construction of these facilities which will provide clean and renewable power.
Quanta Services is benefiting from increased spending in the Electric Power segment on projects to upgrade and deploy their electric power transmission infrastructure to improve system reliability and to deliver renewable electricity from new generation sources to demand centers. Favorable industry legislation is also generating incentives and a positive environment for utilities to invest in their electrical infrastructure, particularly transmission infrastructure.
However, project delays can be a major cause of concern for the company. High prices of solar panel led the developers to wait for a decline in price. Further, low natural gas prices and project financing challenges affected wind market. Reoccurrences of any such happening will prove detrimental to the company’s growth.
Quanta Services Inc. is a leading national provider of specialty contracting services, and is one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry.
Quanta Services currently has a Zacks Rank #1 (Strong Buy). Its close rivals such as, Jacobs Engineering Group (JEC - Free Report) and Aecom Technology Corporation (ACM - Free Report) have a Zacks Rank #2 (Buy).