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Canadian Solar (CSIQ) to Supply 498 MWh Battery Storage in Texas
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Canadian Solar Inc. (CSIQ - Free Report) recently revealed that its e-STORAGE subsidiary has clinched a contract to provide a 498 megawatt-hour (MWh) direct-current DC standalone battery energy storage system to Canada-based Aypa Power. The battery storage system will be installed in Aypa's Bypass Project in Texas, expected to be completed in the third quarter of next year.
Benefits of the Contract
Factors like economic and population growth in Texas in recent times, along with fast-rising demand for power from data centers, have significantly boosted energy demand in this state. Houston, being the state’s largest city, constitutes a major portion of this energy demand peak. Against this backdrop, there is no doubt that the Bypass Project will play a crucial role in meeting the increasing energy needs of the greater Houston area.
Per the terms of the deal, 106 units of SolBank 3.0, the newest battery energy storage technology from e-STORAGE, will be integrated into the Bypass Project, thereby enhancing this project’s grid resiliency.
Under a Long-Term Service Agreement, e-STORAGE will oversee the project's continued operational support following integration and commissioning for use in the commercial sector.
Considering the fact that Texas holds the second position to California as the most installed battery storage capacity of any state in America, as per the U.S. Energy Information Administration’s (“EIA”) January 2024 report, energy storage prospects remain bright in Texas. Therefore, winning a contract to supply energy storage solutions in this state should enable Canadian Solar to further expand its market reach in this region and offer further growth opportunities in the near future.
Canadian Solar’s Growth Prospects in the United States
It is important to note that as the globe moves toward a greener future, the battery storage sector is expanding dramatically not only in Texas but also throughout the United States. As stated by the EIA, U.S. battery capacity is expected to nearly double to more than 30 gigawatts (GW) by the end of 2024 from 2023.
This estimate undoubtedly paves the way for battery storage solution providers like Canadian Solar to capitalize on the expanding energy storage demand in the United States. The latest contract win will support CSIQ in enhancing its footprint in the U.S. energy storage market.
Earlier in August 2023, the company announced that it would supply 1,519 MWh DC of energy storage solutions to Recurrent Energy's Papago Storage project in Arizona. Moreover, Canadian Solar is the project developer of Crimson Storage, a 350 MW/1400 MWh standalone energy storage project, which is in operation and is providing flexible capacity to California’s grid.
Peers to Benefit
Other prominent solar players like Enphase Energy (ENPH - Free Report) , SolarEdge Technologies (SEDG - Free Report) and Emeren Group (SOL - Free Report) are also expanding their footprint to reap the benefits of the expanding U.S. battery storage market.
Enphase Energy’s third-generation Enphase Energy System comes with its most powerful home battery solution, IQ Battery 5P, which can supply dependable electricity to residential customers whenever needed. In May 2023, Enphase launched its IQ Battery 5P in the United States.
ENPH’s long-term (three to five years) earnings growth rate is 17%. Its share price has surged 431.8% in the past five years.
SolarEdge’s Home Rate Saver configuration provides a battery-only solution that is appropriate for time-of-use markets like NEM 3.0 in California. It saves energy throughout the day and uses it in the evening when electricity is more costly.
SEDG has a long-term (three to five years) earnings growth rate of 12.3%. Its shares have risen 27.5% in the past 10 years.
Emeren develops stand-alone storage projects in the United States. As of Mar 31, 2024, its energy storage project pipeline in the United States was 596 MW.
The Zacks Consensus Estimate for SOL’s 2024 sales implies an improvement of 33.7% from the prior-year figure. The Zacks Consensus Estimate for the company’s 2024 earnings per share is pegged at 29 cents, which indicates a massive rise from its 2023 reported EPS of 2 cents.
Price Movement
In the past three months, shares of Canadian Solar have dropped 5.7% compared with the industry’s average decline of 4.1%.
Image Source: Zacks Investment Research
Zacks Rank
Canadian Solar currently carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Canadian Solar (CSIQ) to Supply 498 MWh Battery Storage in Texas
Canadian Solar Inc. (CSIQ - Free Report) recently revealed that its e-STORAGE subsidiary has clinched a contract to provide a 498 megawatt-hour (MWh) direct-current DC standalone battery energy storage system to Canada-based Aypa Power. The battery storage system will be installed in Aypa's Bypass Project in Texas, expected to be completed in the third quarter of next year.
Benefits of the Contract
Factors like economic and population growth in Texas in recent times, along with fast-rising demand for power from data centers, have significantly boosted energy demand in this state. Houston, being the state’s largest city, constitutes a major portion of this energy demand peak. Against this backdrop, there is no doubt that the Bypass Project will play a crucial role in meeting the increasing energy needs of the greater Houston area.
Per the terms of the deal, 106 units of SolBank 3.0, the newest battery energy storage technology from e-STORAGE, will be integrated into the Bypass Project, thereby enhancing this project’s grid resiliency.
Under a Long-Term Service Agreement, e-STORAGE will oversee the project's continued operational support following integration and commissioning for use in the commercial sector.
Considering the fact that Texas holds the second position to California as the most installed battery storage capacity of any state in America, as per the U.S. Energy Information Administration’s (“EIA”) January 2024 report, energy storage prospects remain bright in Texas. Therefore, winning a contract to supply energy storage solutions in this state should enable Canadian Solar to further expand its market reach in this region and offer further growth opportunities in the near future.
Canadian Solar’s Growth Prospects in the United States
It is important to note that as the globe moves toward a greener future, the battery storage sector is expanding dramatically not only in Texas but also throughout the United States. As stated by the EIA, U.S. battery capacity is expected to nearly double to more than 30 gigawatts (GW) by the end of 2024 from 2023.
This estimate undoubtedly paves the way for battery storage solution providers like Canadian Solar to capitalize on the expanding energy storage demand in the United States. The latest contract win will support CSIQ in enhancing its footprint in the U.S. energy storage market.
Earlier in August 2023, the company announced that it would supply 1,519 MWh DC of energy storage solutions to Recurrent Energy's Papago Storage project in Arizona. Moreover, Canadian Solar is the project developer of Crimson Storage, a 350 MW/1400 MWh standalone energy storage project, which is in operation and is providing flexible capacity to California’s grid.
Peers to Benefit
Other prominent solar players like Enphase Energy (ENPH - Free Report) , SolarEdge Technologies (SEDG - Free Report) and Emeren Group (SOL - Free Report) are also expanding their footprint to reap the benefits of the expanding U.S. battery storage market.
Enphase Energy’s third-generation Enphase Energy System comes with its most powerful home battery solution, IQ Battery 5P, which can supply dependable electricity to residential customers whenever needed. In May 2023, Enphase launched its IQ Battery 5P in the United States.
ENPH’s long-term (three to five years) earnings growth rate is 17%. Its share price has surged 431.8% in the past five years.
SolarEdge’s Home Rate Saver configuration provides a battery-only solution that is appropriate for time-of-use markets like NEM 3.0 in California. It saves energy throughout the day and uses it in the evening when electricity is more costly.
SEDG has a long-term (three to five years) earnings growth rate of 12.3%. Its shares have risen 27.5% in the past 10 years.
Emeren develops stand-alone storage projects in the United States. As of Mar 31, 2024, its energy storage project pipeline in the United States was 596 MW.
The Zacks Consensus Estimate for SOL’s 2024 sales implies an improvement of 33.7% from the prior-year figure. The Zacks Consensus Estimate for the company’s 2024 earnings per share is pegged at 29 cents, which indicates a massive rise from its 2023 reported EPS of 2 cents.
Price Movement
In the past three months, shares of Canadian Solar have dropped 5.7% compared with the industry’s average decline of 4.1%.
Image Source: Zacks Investment Research
Zacks Rank
Canadian Solar currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.