Canadian Solar Completes Sale of Project in Brazil

Canadian Solar (NASDAQ:CSIQ) announced the sale of its interest in the Guimarania solar energy project in Brazil on Monday (April 16) to Global Power Generation.

Canadian Solar is one of the world’s largest solar power companies, having delivered 26 GW of solar modules to over 100 countries around the world. It was awarded the project, which is located in Minas Gerais in Brazil, back in 2015.

The terms of the power purchase agreement state that it is valid for 20 years, and the project, once completed, will generate 162,471 MWh per year.

“The sale of the Guimarania project is another demonstration of the strong potential of the solar energy market in Brazil and the continuing success of Canadian Solar in it. This is the fourth project, which we have successfully developed and sold in Brazil, following the 399 MWp Pirapora project portfolio,” Dr. Shawn Qu, chairman and CEO of the company, said in a release.

“With the 476 MWp of projects awarded in the last two energy auctions, Canadian Solar has developed over 955 MWp of solar projects, with long-term PPAs awarded, in the country,” he added.

The 80.6-MWp project is expandable to 83 MWp, and is currently under construction. According to the release, commercial operations will be reached in Q4 2018.

Global Power Generation is a subsidiary of Spanish energy group Gas Natural Fenosa (BMW:GAS)

“This latest acquisition strengthens GPG’s commitment to renewable generation in Latin America by doubling its generation in the Brazilian market since making inroads in 2017. We are pleased to announce this deal,” said Lluis Noguera, CEO of Global Power Generation.

“The time is right for GPG since we have made important acquisitions and developments throughout the world, introducing technology innovations to bring quality renewable energy to communities where we operate, in Brazil in this particular case,” he noted.

Shares of Canadian Solar were trading at $16.05 as of market close on Thursday (April 19), down 1.23 percent.

Zacks Consensus says in its most recent analysis of the company that its share price fell after the release of its earnings report. According to the firm, Canadian Solar missed a number of estimates, with the only highlights being top-line growth, which was up 65.9 percent, and solar module shipments, which were up by 13.6 percent, exceeding the company’s estimates.

Canadian Solar has a “hold” rating at Zacks Consensus, which expects an in-line return from the stock in the next few months.

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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.