Leading global manufacturer of solar products, ReneSola Ltd. (SOL), announced that a large-scale solar power plant in Gahro, Germany equipped with its standard Multi and Virtus high-efficiency modules has become operational.
The solar power plant in Gahro, Germany has been constructed and is now operated by Enerparc, a leading engineering, procurement and construction company in Germany. The plant is equipped with 27.5 MW of ReneSola’s standard Multi and Virtus high-efficiency modules.
Earlier in June 2011, ReneSola shipped Gahro 16.23 MW of its standard Multi modules, comprising 230W, 235W and 240W modules, and 11.23 MW of its Virtus modules, comprising 235W, 240W and 245W modules, which were installed in August.
The solar power plant, which occupies 55 hectares near Heideblick, generates more than 26 million kilowatt hours of electricity each day, enough to supply more than 7,500 homes.
ReneSola enjoys a geographically diverse customer base, ongoing expansion programs, a subsidy program in China, and improving operating dynamics. Despite relatively weak capital markets and a challenging solar market, the company is confident of its long-term prospects.
Going forward, the company expects to benefit from its Virtus wafer technology, increasing in-house polysilicon production and its strong leadership position in wafer production to capitalize on new opportunities.
However, the near-term valuation of the company will be adversely impacted by apprehensions over tepid module demand in Europe, subsidy roll-back in Germany, rising competition, credit risk from its customers and the company’s high research and development expenses. The company presently retains a short-term Zacks #3 Rank (Hold). We have a long-term Neutral recommendation on the stock.
ReneSola, based in China, is a leading global manufacturer of solar wafers and producer of solar power products. Capitalizing on proprietary technologies, economies of scale, low-cost production capabilities and technological innovations and know-how, ReneSola leverages its in-house virgin polysilicon, solar cell and module production capabilities to provide its customers with high-quality, cost-competitive solar wafer products and processing services.
The company’s global network of suppliers and customers includes some of the leading manufacturers of solar cells and modules. The company competes with LDK Solar Co. Ltd. (LDK) and Energy Conversion Devices Inc. (ENER) among others.
