First Solar, Inc. (NASDAQ:FSLR) and Southern California Edison (SCE) have announced the signing of Power Purchase Agreements (PPAs) for the off-take of electricity generated by four solar projects totaling 500 megawatts (MW)AC of capacity. The deals establish SCE as the largest single off-taker of energy from First Solar projects in the world.
The PPAs are for power generated by four projects in California, Nevada and Arizona, all currently in development by First Solar, with anticipated commissioning by the end of 2019:
- The 150MWAC North Rosamond Solar Project, located in Rosamond, Calif., will occupy approximately 1,175 acres of private land, and will produce approximately 488,000 MWh/year.
- 100MWAC from the Willow Springs Solar Project, located near the North Rosamond Solar Project in Rosamond, Calif., which will occupy approximately 1,450 acres of private land, and will produce approximately 330,000 MHh/year.
- The 100MWAC Sunshine Valley Solar Project will be located in Amargosa, Nev., less than four miles from the California border, on privately owned land. It will produce approximately 302,000 MWh/year.
- The 150MWAC Sun Streams Solar Project will be located on approximately 1,500 acres of land in Tonopah, Ariz., and will produce approximately 464,000 MWh/year.
With these agreements, SCE has 2.2 gigawatts (GW) of solar capacity under contract from projects developed and/or built by First Solar. SCE’s first PPA with a project developed by First Solar was for the 21 MWAC Blythe Solar Project in 2009. The utility also has a long-term agreement for 250MWAC of capacity of the 550MWAC Desert Sunlight Solar Project in Desert Center, Calif., which was commissioned in 2014. SCE has additional contracts in place for other projects currently in construction, including the Desert Stateline project in California and the Silver State South project in Nevada.
“This is an exciting milestone to reach in a valued long-term relationship,” said Brian Kunz, First Solar’s Vice President of Project Development – US West. “As an early off-taker, SCE was visionary in their inclusion of utility-scale solar in their energy mix. Their commitment to providing rate-payers with clean, affordable renewable energy continues with this set of agreements.” (Original Source)
Shares of First Solar closed last Friday at $61.32 . FSLR has a 1-year high of $72.12 and a 1-year low of $39.18. The stock’s 50-day moving average is $62.94 and its 200-day moving average is $52.30.
On the ratings front, First Solar has been the subject of a number of recent research reports. In a report issued on January 15, Standpoint Research analyst Ronnie Moas upgraded FSLR to Buy. Separately, on January 8, Deutsche Bank’s Vishal Shah maintained a Buy rating on the stock and has a price target of $86.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ronnie Moas and Vishal Shah have a total average return of 5.8% and -20.6% respectively. Moas has a success rate of 65.7% and is ranked #36 out of 3582 analysts, while Shah has a success rate of 21.6% and is ranked #3560.
Overall, one research analyst has assigned a Hold rating and 12 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $81.67 which is 33.2% above where the stock closed last Friday.
First Solar Inc is a provider of solar energy solutions. It designs, manufactures and sells PV solar modules with a thin-film semiconductor technology. It also manufactures crystalline silicon solar modules.