GUELPH, ON - Canadian Solar Inc. (NASDAQ: NASDAQ:CSIQ) today announced its subsidiary, CSI Solar Co., Ltd., through its e-STORAGE division, has secured a contract to provide 11 MW AC / 22 MWh AC energy storage solutions for Root-Power Ltd.'s Coryton Energy Park project in Essex, England. The construction of the project commenced in late May 2024.
Under the agreement, e-STORAGE will deliver its latest energy storage product, SolBank 3.0, which boasts a 45% capacity increase over its predecessor within a 20-ft container. The system, designed to optimize land use and reduce costs for large-scale projects, is equipped with high-density lithium-iron-phosphate cells and features an advanced cooling system to maintain optimal performance.
Root-Power, part of the YLEM Group, aims to expand its energy storage capacity in the UK significantly, with plans to construct over 1 GWh of systems in the next three to four years. The Coryton project is a step towards this goal, with an additional 150 MWh expected to be added to Root-Power's portfolio in 2024 and 2025.
Neil Brooks, Managing Director of Root-Power, emphasized the importance of energy storage in the UK's efforts to decarbonize and meet energy needs on less sunny or windy days. He expressed confidence in e-STORAGE's ability to deliver on the project, citing Canadian Solar's ESG and supply chain management performance.
Colin Parkin, President of e-STORAGE, expressed pride in contributing to the UK's green energy transition and highlighted the company's role as a trusted partner in the sector.
Canadian Solar, a global leader in solar technology and renewable energy solutions, has a strong track record with over 125 GW of solar photovoltaic modules delivered worldwide. Its project development arm has also seen significant growth, with over 10 GWp of solar power projects and 3.3 GWh of battery energy storage projects completed globally.
The company's extensive pipeline includes 1.2 GWp of solar projects in operation, 6.5 GWp under construction or in backlog, and 19.8 GWp in advanced and early-stage development. Additionally, Canadian Solar has 600 MWh of battery energy storage projects in operation and a robust development pipeline of approximately 56 GWh.
This announcement is based on a press release statement from Canadian Solar Inc.
In other recent news, Canadian Solar Inc. has secured $513 million in financing for a major energy storage project in Arizona. The project, managed by its subsidiary Recurrent Energy, will significantly enhance Arizona's energy storage capabilities.
The company reported robust Q1 2024 results, with revenues of $1.3 billion and module shipments totaling 6.3 gigawatts. The company is also aiming to operate 4 gigawatts of solar and 2 gigawatt-hours of battery energy storage by 2026.
Recurrent Energy, in collaboration with SPIC Brasil, has launched the 446 MWp Marangatu Solar Complex in Brasileira, Brazil, expected to supply electricity to approximately 550,000 homes annually. In Japan, Canadian Solar has initiated its inaugural portfolio of feed-in premium (FIP) photovoltaic projects, signing a 20-year Power Purchase Agreement with Toyota (NYSE:TM) Tsusho Corporation.
Oppenheimer has reduced its price target for Canadian Solar from $51 to $43, while maintaining an Outperform rating. This adjustment is due to the company's strategic shift in solar module shipments, particularly to China.
Despite this, Canadian Solar continues to experience growth in its battery business and has a robust project backlog in energy storage.
InvestingPro Insights
As Canadian Solar Inc. (NASDAQ: CSIQ) forges ahead with its energy storage solutions, the financial metrics from InvestingPro paint a detailed picture of the company's market position. With a market capitalization of $1.09 billion USD and a notably low Price / Book ratio of 0.43 as of the last twelve months up to Q1 2024, Canadian Solar is currently trading at a valuation that suggests its assets may be undervalued. This metric is particularly relevant for investors considering the company's tangible asset base and its role in the capital-intensive renewable energy industry.
The company's Price/Earnings (P/E) ratio stands at an adjusted 5.14 for the same period, indicating that Canadian Solar's earnings are available at a lower price multiple compared to some of its peers. This could be appealing to value-oriented investors looking for potential bargains in the solar sector. InvestingPro Tips highlight that Canadian Solar is trading at a low earnings multiple, which aligns with the adjusted P/E ratio data.
Despite a challenging environment with a revenue decline of 8.56% over the last twelve months as of Q1 2024, Canadian Solar remains a prominent player in the Semiconductors & Semiconductor Equipment industry. This is significant considering the competitive landscape and the rapid evolution of renewable energy technologies. Moreover, analysts predict the company will be profitable this year, which is an encouraging sign for stakeholders considering the company's profitability over the last twelve months.
For investors seeking more comprehensive analysis and personalized insights, InvestingPro offers additional tips on Canadian Solar, including perspectives on cash burn and earnings revisions. To access these InvestingPro Tips and more, visit https://www.investing.com/pro/CSIQ and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 11 additional tips listed in InvestingPro that could further guide investment decisions.
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