Canadian Solar Inc. (CSIQ), in an expansion spree in the U.K. solar markets, has entered into an agreement to supply 15 megawatt (MW) of solar modules for three UK solar farms that are constructed by Spanish renewable energy project company Isolux.
The three UK solar farms are located in Churchtown, East Langford and Manor Farm, and use Canadian Solar's high quality and high-performing CS6P solar modules. The projects are expected to be completed in June 2011.
Canadian Solar’s solar modules have an attractive cost-performance ratio, high reliability and top quality, along with a 25-year, non-cancelable warranty, which is backed by AM best rated insurance companies in Europe.
The company has a dominant presence in the UK alternative energy market. The company has also built a strong partner, distributor and support network across all EU markets.As a result, it is in an ideal position to work and further grow with partners, like Isolux. Isolux Corsan, by the way, is a global benchmark in the areas of construction, concessions, engineering, industrial services, and finally, renewable energies.
Recently Canadian Solar Inc. had signed an agreement with Saferay GmbH to sell 81 MW of solar modules at a fixed price for projects in Germany. Canadian Solar has already begun delivery and expects to complete the full quota of 81 MW before the end of the third quarter 2011. It has also entered into another agreement with GP Joule to supply 97 MW high performance solar modules before December 31, 2011.
Canadian Solar is a low cost, vertically-integrated solar module producer and its prospects look favorable based on a geographically-diverse customer base, ongoing capacity expansion programs, improving operating efficiencies and material cost savings through its vertically-integrated production structure.
However, the company’s shipments have of late been impacted by higher solar cell prices. The company presently retains a short-term Zacks #5 Rank (Strong Sell). We have a long-term Neutral recommendation on the stock. In the near term, however, we would advise investors to hold its short-term Zacks #3 Rank (Hold) rating peer Suntech Power Holdings Co. Ltd. (STP).
CANADIAN SOLAR (CSIQ): Free Stock Analysis Report
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