Canadian Solar Inc. (NasdaqGS:CSIQ - News) has completed work on a 10 MW solar project in collaboration with Ningxia Electric Power Group. The collaboration has completed the grid-connection of the ground mounted solar project, which is part of a 50MW solar plant, in Hongsibao, Ningxia, in northwest China.
The 10MW solar project comprises 8 MW of fixed system and 2 MW of tracking system. The facility is expected to generate approximately 13,511,167 KWh of solar power. This renewable solar energy has the capacity to reduce CO2 emissions by 18,900 tons annually. This is equivalent to saving 5,200 tons of standard coal.
Ningxia Power Group was responsible for constructing and financing of the project and Canadian Solar's joint venture, Gaochuangte New Energy, acted as the Engineering, Procurement and Construction (“EPC”) contractor.
Canadian Solar is a low-cost, vertically-integrated solar module producer with predominantly China-based manufacturing assets. Moreover, it is actively working to build momentum worldwide. This is evidenced by the fact that recently it has agreed to sell nine solar projects with a combined capacity of 86 MW in Ontario to TransCanada Corporation (NYSE:TRP - News) for about C$470 million. The projects are expected to come into service between late 2012 and mid-2013.
Additionally, the prospects for Canadian Solar look favorable based on a geographically diverse customer base, and improving operating efficiencies through its vertically-integrated manufacturing operation. However, in the near term, fortunes would be affected by the industry-wide oversupply glut leading to sharply falling Average Selling Prices, tepid module demand in Europe, and rising competition in the market. The company presently retains a short-term Zacks #3 Rank (Hold). We have a long-term Underperform recommendation on the stock.
Canadian Solar Inc. is one of the world's largest solar companies. As a leading vertically integrated provider of ingots, wafers, solar cells, solar modules and other solar applications, Canadian Solar designs, manufactures and delivers solar products and solar system solutions for on-grid and off-grid use to customers worldwide. With operations in North America, Europe, Australia and Asia, Canadian Solar provides premium quality, cost-effective and environmentally friendly solar solutions to support global, sustainable development.
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