Canadian Solar Solutions Inc., a subsidiary of Canadian Solar Inc. (CSIQ), sold its 10-megawatt (MW) alternating current (AC) Liskeard 1 solar power facility to TransCanada Corporation (TRP) in a transaction valued at $52 million (C$60 million).
Canadian Solar Solutions had installed the MaxPower CS6X-P modules at the New Liskeard, Ontario-based Liskeard 1 solar farm. Apart from ensuring better efficiency and higher system reliability, this module provides higher performance even at low irradiance.
Canadian Solar has prior experience of working with TransCanada. On Oct 2, 2014, the company sold three of its solar power plants – William Rutley, Liskeard 3 and Liskeard 4 – to TransCanada for $161.2 million (C$180 million). These three facilities have a total power generation capacity of 30 MW AC. Also, in Jan 2014, TransCanada had acquired the 10-MW AC Mississippi Mills solar power plant from Canadian Solar.
Alberta, Canada-headquartered TransCanada is engaged in constructing power generation and gas storage facilities, and energy infrastructure. The company owns natural gas pipelines, and provides gas storage and allied services.
TransCanada is currently focused on expanding its renewable portfolio. The latest transaction is part of a purchase contract inked between TransCanada and Canadian Solar in 2011, under the former’s Ontario solar program. The output generated from the Liskeard 1 solar facility will be sold to the Ontario Power Authority under a 20-year power purchase agreement.
Apart from China, Japan and the U.S., the growing awareness of the benefits of alternative energy for the environment has substantially boosted solar demand in Canada. In 2013, the total capacity of solar photovoltaic systems installed in Canada had stood at 444 MW.
Canadian Solar plans to add a total of 500-MW solar modules at its Changshu and Luoyang facilities in China. Upon completion, the company’s total capacity will stand at 3.5 gigawatts.
Apart from winning contracts from Canadian firms, Canadian Solar has significant presence in the U.S., the Latin America and other emerging solar markets. In Sep 2014, a subsidiary of Canadian Solar formed an $800-million investment fund in China with Sichuan Development Investment Management Ltd. and third-party investors. The aim of the partnership was to promote utility-scale and distributed generation solar power projects in the Sichuan Province and other parts of China.
These initiatives will enable Canadian Solar to expand its revenue streams and reduce country-specific risks.
Canadian Solar currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include JA Solar Holdings Co., Ltd. (JASO) and STR Holdings, Inc. (STRI), carrying a Zacks Rank #2 (Buy).
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