Emeren Group (SOL) Divests 42 MWp Solar Portfolio in Spain
Emeren Group Ltd. SOL recently announced the sale of a ready-to-build (RTB) solar project portfolio of 42 megawatt peak (MWp) in Spain to CVE Espana. This divestment can be expected to boost SOL’s third-quarter 2024 revenues.
This portfolio includes eight Greenfield plants, with sizes ranging from 5 to 6 megawatts (MW). One among these projects is already completed, while the rest are projected to be completed by Emeren in the third quarter of 2024. The combined energy production from these eight projects is expected to reach 92.8 gigawatt-hours (GWh)/year.
Emeren’s Growing Ground in Europe’s Solar Market
Emeren is steadily gaining momentum in Europe’s solar market to reap the benefits of the growing demand in this region. To this end, the Mordor Intelligence firm expects the Solar Photovoltaic Market in Europe to witness a CAGR of 12.3% from 2024 to 2029.
It is imperative to mention in this context that Europe remains a solid revenue contributor for Emeren. This region contributed 78% to the total revenues of the company in the last reported quarter. Based on its already established footprint here, Emeren's recent efforts seem to be prudent as it strives to expand its presence in Germany, France, Spain, Poland, Hungary and Italy within Europe. The latest project sale is another bright example of that.
Earlier, in December 2023, the company sold a solar portfolio worth 53.6 MWp in Hungary. Emeren monetized 29 MW of its solar PV portfolio in Spain in November 2023 and sold a portfolio in Italy to Matrix Renewables that included five Battery Energy Storage Systems with a capacity of 3,787 MWh.
As of Mar 31, 2024, Emeren had 7,373 MW of solar projects in the pipeline under advanced-stage and early-stage development and owned and operated nearly 67 MW of power purchase agreement projects in Europe. Such a solid pipeline would surely boost Emeren’s future revenues from the solar market in Europe through the monetization of these projects, like the recent sale.
Peers to Benefit
Other prominent solar players like Enphase Energy, Inc. ENPH, Canadian Solar Inc. CSIQ and SolarEdge Technologies Inc. SEDG are also expanding their footprint in the European region to reap the benefits of the growing solar market’s prospects here.
Enphase Energy has been steadily expanding in Europe. In the third quarter of 2023, Enphase entered Sweden, Denmark and Greece solar markets with both its IQ8 microinverters. In December 2023, Enphase introduced its most powerful home energy system, the Enphase Energy System, which is equipped with the new IQ Battery 5P and IQ8 microinverters, in Italy.
ENPH’s long-term (three to five years) earnings growth rate is 17%. Its share price has rallied 1.3% in the past six months.
Canadian Solar has a solid presence in Germany, Poland, Spain, Italy, France and the Netherlands. As of March 2024, the company had 5,110 MW of early-stage pipeline in the Europe, Middle East and Africa region.
CSIQ’s long-term (three to five years) earnings growth rate is 25%. The Zacks Consensus Estimate for 2024 sales implies an improvement of 2.5% from the prior-year figure.
SolarEdge has a strong presence in Germany, the United Kingdom and Switzerland. On Mar 28, 2024, SolarEdge rolled out dynamic rate optimization capability, powered by the SolarEdge ONE system, in the Netherlands.
SEDG’s long-term earnings growth rate is 12.3%. Its shares have surged 42% in the past 10 years.
Price Movement
In the past month, shares of Emeren have risen 4.1% against the industry’s average decline of 15.6%.
Image Source: Zacks Investment Research
Zacks Rank
Emeren currently carries a Zacks Rank #5 (Strong Sell).
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