SunPower Corporation SPWR has entered into a joint venture with Apple Inc. AAPL to build two solar power projects totaling 40 megawatts (“MW”) in ABA Tibetan and Qiang Autonomous Prefectures, Sichuan Province, China.
The solar projects include Hongyuan Huanju Ecological Energy Co., Ltd., located in Hongyuan County and Ruoergai Huanju Ecological Energy Co., Ltd., located in Ruoergai County, both having a generation capacity of 20 MW each.
These solar projects are the first of its kind to be developed in the Environmentally-Preserved ABA Region and will produce nearly 80 million kilowatt-hours per year without impacting the existing ecosystem. Since the projects will utilize SunPower's unique "light-on-land" approach, pasture farming can continue uninhibited while electricity is being generated. These are expected to be complete in the fourth quarter of 2015.
SunPower with its advanced solar solution capacity has already partnered with Apple in six U.S. projects totaling 90 MW of green energy. This will be the first overseas joint venture for the two.
SunPower has earlier worked on two Chinese solar projects. China is striving to increase solar power usage to generate electricity. The Chinese National Energy Administration revealed its ambitious goal of installing 17.8 gigawatts (“GW”) of solar capacity in 2015, which is about 18.7% higher than the previous 15 GW proposal announced in February.
Besides foreign solar cell producers, domestic manufacturers like JA Solar Holdings Co., Ltd. JASO and Trina Solar Ltd. TSL among others also stand to benefit from China’s solar boom.
SunPower Corporation currently has a Zacks Rank #3 (Hold) while Apple holds a bullish Zacks Rank #2 (Buy).
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