Yahoo Finance SunPower Completes the World’s Largest Solar Project in 2Q15
SunPower's 2Q15 Earnings Marked by Birth of 8point3 Energy
Projects business
SunPower (SPWR) provides services related to the construction of solar power (TAN) plants. The company generates revenue from two types of project:
third-party projects
its own projects
Third-party projects
SunPower builds solar power projects for third-party owners or investors. Some of its own projects currently under construction may also be sold to third parties. The company offers EPC (engineering, procurement, and construction) services. It also oversees the day-to-day operations and maintenance of commissioned solar power plants.
As noted earlier in this series, the company completed the 748 MW Solar Star Project in California for MidAmerican Energy (BRK-B). So far, this is the largest solar power project in the world.
During the quarter, the company transferred the 135 MW Quinto Solar Project in California to 8point3 Energy. The project is expected to be completed this year.
The 86 MW Prieska Solar Project in South Africa is expected to be completed in 2016.
The company expects to record another $176 million in revenues from these projects between now and 2016.
Owned projects
The company is building the California-based 128 MW Henrietta Solar Project and the Colorado-based 60 MW Hooper Solar Project. These projects are expected to be completed by 2016.
Both are part of a ROFO (right of first offer) agreement with 8point3 Energy that we touched on in Part 10 of this series. The company has power purchase agreements with PG&E (PCG) and Public Service Company of Colorado (XEL) for these projects. SunPower is also building a 68 MW solar project in connection with a power purchase agreement it has with Stanford University.
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