General Electric Company Power’s Power Conversion (NYSE:GE) via its FiT program is set to offer a full turnkey contract to Fas Energy. The purpose? The creation of 50-MW solar power plants about to be up and running for Egyptian Electricity Transmission Company (EETC), from financing to equipment. Thanks to one of Egypt’s first utility-scale power plants bringing to the table 1,500-volt technology, GE will be a power source to 15,000 local homes.
Eng. Lamya Yousef, head of IPP & Renewable Energy at EETC, remarked: “According to the government strategy, Egypt’s New & Renewable Energy Authority had set up a target of generating 20 percent of its energy from renewable sources by the year 2020, among which solar energy development is a key driver to achieve the goal. The FiT program is the first utility-scale solar project in Egypt, and it is our strong commitment to the country’s sustainable economic growth and a cleaner environment.”
Sabri Asfour, general manager at FAS ENERGY, said: “Egypt has abundant solar radiance all year round, and developing solar energy makes both social and economic sense. In order to achieve the government’s renewable target, it requires partners that have strong financing capacity and technology expertise. We are impressed to find GE as a reliable partner that embodies both capabilities. Furthermore, Egypt is an excellent market for the renewable projects. FAS is expanding our investment portfolio to install on its roof top and car park as well. Now, FAS ENERGY already signed a few PPAs (power purchase agreements) in Pakistan and Saudi Arabia.”
Azeez Mohammed, president & CEO, GE’s Power Conversion, said: “This is GE’s first full turnkey contract to build a solar power plant. We offer solutions that cover the complete solar energy value chain. By taking the integrated system approach, we help de-risk the project and enhance plants’ reliability and revenues. With the digital technology coming as the next piece among our solar solution portfolio, we are committed to building tomorrow’s solar farms that are set to bring greater efficiency and productivity.”
Based on the agreement, GE will provide 4.4-MW solar skids featuring GE’s LV5 1,500-volt solar inverters, marking the first entry of the 1,500-volt system into the solar market in Egypt. The highly efficient inverter skids can help improve the annual energy production and thus increase the project revenues. It can lead to up to a 3 percent lower system cost and up to 15 percent less in maintenance costs compared to its 1,000-volt peers. It also helps reduce costs associated with infrastructure, deployment and operation expenditures.
GE will also procure the complete plant assets such as solar modules, trackers and cables provide the integrated system solution to the customer and be responsible for the civil, mechanical and electrical works to ensure the successful asset deployment and commissioning of the power plant.
Moreover, GE will provide a favorable payment scheme to help the customer kick off the project and enhance the plant’s bankability. (Original Source)
Shares of General Electric closed yesterday at $24.46, up $0.53 or 2.21%. GE has a 1-year high of $32.38 and a 1-year low of $23.58. The stock’s 50-day moving average is $24.78 and its 200-day moving average is $27.50.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on September 15, RBC analyst Deane Dray reiterated a Buy rating on GE, with a price target of $31, which represents a potential upside of 27% from where the stock is currently trading. Separately, on September 11, Deutsche Bank’s John G. Inch reiterated a Sell rating on the stock and has a price target of $21.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Deane Dray and John G. Inch have a yearly average return of 5.8% and 13.1% respectively. Dray has a success rate of 64% and is ranked #551 out of 4651 analysts, while Inch has a success rate of 78% and is ranked #725.
Overall, 2 research analysts have rated the stock with a Sell rating, 5 research analysts have assigned a Hold rating and 5 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 $27.27 which is 11.5% above where the stock closed yesterday.