Sunedison Inc (NYSE:SUNE), the largest global renewable energy development company, announced it has signed two 20-year power purchase agreements with utility company Southern California Edison for 2.7 megawatts DC of solar.
Southern California Edison is exploring how clean energy resources like wind and solar could defer or eliminate the need to build a new gas power plant in Orange County. The closure of nearby ocean-cooled power plants, including the San Onofre nuclear power plant, has impactedSouthern California’s electricity supply, and the utility is eager to find cost effective, clean energy alternatives to support growing demand.
“We know that air quality is a big concern for residents in the area, but so is getting reliable electricity to a growing, economically important region. SunEdison can help,” said Sam Youneszadeh, SunEdison’s regional general manager of its Western U.S. solar business. “Solar is a great way for utilities to boost grid reliability without emitting greenhouse gases. Solar is cost effective, quick-to-build, and can easily scale. It’s great to see Southern California Edison looking after the people it serves.”
With SunEdison’s solar power purchase agreement, the utility will enjoy the benefits of solar energy without any up-front cost. SunEdisoninstalls, owns, and operates each system while the utility enjoys low-cost, clean solar electricity.
SunEdison intends to build the systems using a combination of parking canopies and rooftop space. Solar parking canopies provide shade for parked cars while generating cost-effective, clean solar energy.
These solar systems further help the utility meet California’s recently passed goal to produce half its electricity from renewables by 2030.
The solar systems are expected to generate enough energy to power 640 California homes per year. The systems should help avoid the emission of more than 50 million pounds of carbon dioxide over 20 years—the equivalent of taking around 5,000 cars off the road.
SunEdison intends to complete the solar systems pending approval of the contracts by California’s Public Utility Commission. Operation and maintenance of the solar systems will be performed by SunEdison Services, which provides 24/7 global asset management, monitoring and reporting services. (Original Source)
Shares of SunEdison closed yesterday at $1.43. SUNE has a 1-year high of $33.45 and a 1-year low of $1.37. The stock’s 50-day moving average is $2.84 and its 200-day moving average is $6.76.
On the ratings front, SunEdison has been the subject of a number of recent research reports. In a report issued on February 19, Credit Suisse analyst Patrick Jobin downgraded SUNE to Hold, with a price target of $3, which represents a potential upside of 109.8% from where the stock is currently trading. Separately, on the same day, Janney Montgomery Scott’s Michael Gaugler downgraded the stock to Hold .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Patrick Jobin and Michael Gaugler have a total average return of -21% and 3% respectively. Jobin has a success rate of 24% and is ranked #3506 out of 3638 analysts, while Gaugler has a success rate of 66% and is ranked #618.
The street is mostly Neutral on SUNE stock. Out of 12 analysts who cover the stock, 6 suggest a Hold rating , 5 suggest a Buy and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $6.00, which represents a potential upside of 319.6% from where the stock is currently trading.
SunEdison Inc is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets. The Company is also engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry.