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Canadian Solar Inc. (CSIQ) Strikes 146.4 MW Honduras Deal

Zacks Equity Research

Canadian Solar Inc. (CSIQ) announced that it will supply 146.4 megawatts (MW) of photovoltaic (PV.V) modules to two utility-scale projects in Honduras.

The construction of both projects is slated to begin by the end of this year and complete by Mar 2015. Both projects have an equal capacity of 73.2 MW. The electricity generated by these two plants will be sufficient to meet the power requirement of about 45,000 homes. These plants will be jointly developed by Solar Power S.A. de C.V. (:SOPOSA) and Compania Hondurena de Energia Solar S.A. de C.V. (:COHESSA).

The solar PV module of Canadian solar has been the top-ranked module in the PVUSA Test Conditions (PTC) Ratings for four years now.
 
In recent times, the company has been eyeing to grab a larger market share. This deal in Honduras is in line with the company’s strategy to expand its operations in Latin America. In Jun 2013, the company had opened a new office in Sao Paulo, Brazil in its effort to strengthen its presence in South America.

Like its peers SunPower Corp. (SPWR) and First Solar, Inc. (FSLR), Canadian Solar is also keen on exploring opportunities in new and emerging markets like Asia and Latin America as well.
 
The company’s steady efforts toward expanding its operations in the emerging solar power markets along with strengthening its presence in Canada and the U.S. are commendable. These initiatives will enable it to diversify its revenue stream.

Recently, Canadian Solar agreed to supply its CS6X-P photovoltaic solar modules for a project under development in California by EDF Renewable Energy (EDF RE), a U.S. unit of Electricite de France SA. In Sep, 2014, the company completed the construction of its first PV solar power plant at Shibushichocho, Japan.

Canadian Solar currently holds a Zacks Rank #1 (Strong Buy). Other well-placed stock in the same sector is ReneSola Ltd. (SOL), carrying a Zacks Rank #2 (Buy).

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