Boston, MA 05/28/2014 (wallstreetpr) – First Solar, Inc. (NASDAQ:FSLR) has announced passing over of a major solar energy project in Nevada. However, the company will continue to provide some services to the new owner of the project.
The company developed and designed the 250MW Silver State South solar energy project but has decided to sell the same to a subsidiary of NextEra Energy Resources, a provider of renewable energy. The price of the transaction has not been disclosed.
The Silver State South solar project is on a federally-managed 3,000-acre land in Clark County, Nevada. First Solar, Inc. (NASDAQ:FSLR) already owns another solar project in the area, a 50MW Silver State North project that was commissioned in 2012.
Even after the sale of the Silver State South project, First Solar will continue to offer construction, procurement and engineering services to the new owner, NextEra.
Long-term power purchase
The 250MW Silver State South solar power project is expected to be completed by late 2016. According to First Solar, Inc. (NASDAQ:FSLR), electricity from the facility will be sold to Southern California Edison under a long-term power purchase deal.
NextEra SVP of Development, Mike O’Sullivan, noted that the move to acquire the Silver State South solar project confirms the company’s efforts to expand its portfolio of renewable energy while partnering by some of the leading players in the sector. NextEra’s renewable energy portfolio captures solar and wind projects.
The regulatory requirement that energy companies generate a certain percentage of their power from renewable sources has opened up big opportunities for providers of renewable power such as First Solar, Inc. (NASDAQ:FSLR) and NextEra.
Conclusion
First Solar, Inc. (NASDAQ:FSLR) is enjoying its time in business. The company earned $1.10 per share in 1Q2014 according to its financial results released earlier this month. Analysts expected the company to report earnings of $0.56 per share. Revenue in the quarter came in at $950 million, ahead of $837.90 consensus estimate for the quarter.
