SunPower Corporation (NASDAQ:SPWR) in collaboration with TOTAL S.A. (TO:TOT) has agreed to supply 300 gigawatt (GW) hours per year of clean solar energy to Santiago metro. Electricity generated from SunPower’s 100-megawatt (MW) El Pelicano solar project will be supplied to the subway system in Chile’s largest city. The company will start constructing the solar project this year and is expected to complete the same by 2017 end.
The El Pelicano Solar Project should meet about 60% of the subway network’s total energy requirement. The subway network serves 2.2 million passengers a day. With this deal, it will become the first public transport system to operate mostly on solar power.
Similar Initiatives
SunPower strives to provide high-performance solar products to its customers. The company utilizes sophisticated manufacturing techniques to improve solar cell efficiency, reduce wafer thickness, improve throughput, process yield and quality, and introduce new products that assist customers to develop solar projects.
In spite of the ongoing slump in oil prices, alternative sources of energy, particularly solar, have been gaining popularity rapidly mainly on the back of their clean burning nature.
To tap the growing demand for solar products, SunPower has undertaken several initiatives to strengthen existing operations and increase production volumes. The company’s customer base is spread across North America, Europe, the Middle East and Asia. In Japan, it has started the construction of the 27-MW Nanao project, which is slated to begin commercial operation from first-quarter 2017. Mexico has recently shifted its focus to clean energy and SunPower is playing a key role in this transition. Recently, the company received orders to develop 500 MW solar projects in the country.
In the U.S., solar energy will constitute only 1.1% of the total utility-scale generation in 2017, according to a U.S. Energy Information Administration report. This provides immense room for growth both for the industry and its players like SunPower and First Solar Inc. (NASDAQ:FSLR) .
Zacks Rank & A Key Pick
SunPower currently has a Zacks Rank #4 (Sell).
A better-ranked stock in the same space is JinkoSolar Holding Co. Ltd. (NYSE:JKS) , with a Zacks Rank #2 (Buy).
TOTAL FINA SA (TOT): Free Stock Analysis Report
FIRST SOLAR INC (FSLR): Free Stock Analysis Report
JINKOSOLAR HLDG (JKS): Free Stock Analysis Report
SUNPOWER CORP-A (SPWR): Free Stock Analysis Report
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