Canadian Solar Inc. (CSIQ) announced that its unit Canadian Solar Solutions Inc. has entered into an engineering, procurement and construction (“EPC”) contract with Canada-based solar farm Penn Energy Renewables Ltd.
Per the EPC contract, Canadian Solar will be entrusted with the duty to maintain and operate two new solar energy farms in Ontario, Canada. The construction work will begin in the third quarter of 2013. The combined capacity of these plants will be 18.7 MW. The plants are expected to come online during the summer of 2013, when demand for power generally peaks.
The photovoltaic technology aids in the generation of eco-friendly power and in the process lowers the emission of green house gases. The new solar plants are expected to reduce emission by 432,000 metric tons over a 20-year period and power 2,600 homes.
This fresh agreement came on the heels of a recent deal worth $48.4 million signed by the company to sell a utility-scale solar power plant to Stonepeak Infrastructure Partners. This plant is located in eastern Ontario and will be able to provide power to 1,200 homes.
The increasing use of renewable energy can be attributed to a growing awareness of the malaise of fossil fuels and pressure from the government to conform to strict environmental regulations and policies. We believe the cost of installation and operation of these solar plants compared to the plants using conventional sources of fossil fuel also plays a vital role in investment decisions.
The cost of operating the solar plants could be lowered if the solar panels used to generate energy have high conversion rates. The photovoltaic cell manufacturers throughout the globe are investing heavily on research and development work to achieve higher conversion rates. Canadian Solar is a frontrunner in the development of advanced solar panels. It has developed a new product which will be fully functional in areas having high ammonia exposure.
Canadian Solar currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. The company’s peers in the in the photovoltaic space are First Solar Inc. (FSLR) and SunPower Corporation (SPWR)
Based in Ontario, Canada, Canadian Solar, together with its subsidiaries, engages in the design, development, manufacture and marketing of solar cell and solar module products that convert sunlight into electricity for various domestic and international uses.
CANADIAN SOLAR (CSIQ): Free Stock Analysis Report
FIRST SOLAR INC (FSLR): Free Stock Analysis Report
SUNPOWER CORP-A (SPWR): Free Stock Analysis Report
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