SunPower To Construct 10MW Solar Power Plant In Covington
Zacks Investment Research | Jul 20, 2017 08:40AM ET
SunPower Corporation (NASDAQ:SPWR) , a subsidiary of Total S.A. (NYSE:TOT) , recently signed a contract with Oklahoma Gas & Electric Company (OG&E), an electric utility subsidiary of OGE Energy Corp. (NYSE:OGE) . Per the deal, SunPower will construct a 10-megawatt (MW) solar photovoltaic (PV) power plant in Covington, OK.
Details of the Plant
The plant's construction will start from August, while its commercial operation is expected to commence in the beginning of 2018.
SunPower Oasis Power Plant system, which will be designed and built by the company, is a total power plant solution that could be set up fast to maximize value for customers. The system includes 50% less parts compared with the usual solar plant systems. It also boasts an incorporated solar tracker design that simplifies construction, and decreases operations and maintenance costs.
Additionally, the system is powered by cost-effective, high efficiency SunPower P-Series solar panels, generating more energy than conventional solar panels over the life span of the system.
After being operational, operations and maintenance services will be provided by SunPower. Also, it is expected to generate sufficient electricity to meet the requirements of more than 1,000 average Oklahoma homes, per the approximations provided by the Solar Energy Industries Association. Notably, the renewable energy credits associated with the system will be owned by OG&E.
SunPower's Order Wins
In June, SunPower was selected to supply 64 MW of its high efficiency SunPower E-Series solar panels for France’s rooftop solar projects. Again in May, SunPower initiated the construction of a 28 MW solar photovoltaic system at Vandenberg Air Force Base near Lompoc, CA.
Earlier in March, the company was selected to supply 130 MW of its high efficiency SunPower E-Series solar panels for rooftop solar projects.
Upcoming Solar Power Projects
SunPower has a number of projects under construction including Boulder Solar II, a 62 MW AC solar power plant in the Eldorado Valley of Boulder City, NV, which is anticipated to be operational from this year. Sierra Pacific Power Company will be purchasing the power generated by the plant under a 20-year power purchase agreement (PPA).
Furthermore, the Iberdrola (MC:IBE) Gala Solar Project, with a capacity of 56 MW, is expected to be operational from the current year.
The company has plans to build few solar projects in different regions in Mexico with expected delivery dates in 2018 and 2019. These projects are anticipated to generate gross margin above 20%.
What Lies Ahead for the Solar Industry?
With growing concerns regarding climatic changes, many countries across the globe are focusing on solar and wind generation. Therefore, solar power is expected to become one of the major energy sources in coming days. In fact, the U.S solar companies are already serving customers globally as the big economies are willing to explore the power of the sun.
Get The News You Want
According to a U.S. Energy Information Administration (“EIA”) report, the utility-scale solar power capacity will continue to grow by almost 44% from 21 GW at the end of 2016. Notably, the projected increase will bring the amount of solar capacity to 31 GW at 2018 end.
In spite of the rapid uptick, solar will still constitute just 1% of the total U.S. utility-scale generation in 2018, thereby indicating immense scope for growth.
Over the last few years, utility-scale solar has represented almost two thirds of the market, and this trend will likely continue in the near term, given the huge pipeline of projects under construction.
In particular, 2016 was a record year for the U.S. solar industry. The PV market grew 97% from 2015’s individual installations of more than 3,70,000. Although all the market segments grew in 2016, the utility sector recorded maximum growth, which was more than doubled with installations totaling over 10 gigawatts (GW). Considering the aforementioned developments, similar upside in the solar industry can be expected for 2017 and beyond as well.
Price Movement
SunPower has outperformed the Zacks categorized Original post
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