SunPower (SPWR) Gets Lion's Share Of France's ZNI Tender

SunPower Corporation (NASDAQ:SPWR) announced that it has been successful in winning 76% of the French government's tender for supplying the country's ZNI (non-interconnected zones) with green energy and power storage. Per the deal, SunPower will utilize its latest technology to provide 39.1 megawatts ("MW") of solar energy.

Details of the ZNI Tender

This is an initiative by the French government to increase the usage of solar energy for generation of green power. The government awarded 33 contracts out of which SunPower won 27 contracts to produce power from solar energy.

SunPower was selected to supply 20.7 MW of its high efficiency solar panels, the world's only direct current solar panels to achieve the Cradle to Cradle Certified Silver designation for sustainable practices used in manufacturing.

In addition, SunPower will also design and build five development projects, totaling 18.4 megawatts of solar power with battery storage. All of the projects are expected to be operational by mid-year 2019.

Why SunPower?

SunPower has the knowledge and expertise of deploying in excess of six gigawatts of solar technology around the world. In addition, its continuous research and innovative work in development of higher efficiency solar panels helps to lower the cost of installation of utility scale solar projects (read more:SunPower Solar Panels Break Record with 24.1% Efficiency).

It wasn't surprising that SunPower with its expertise in installing solar plants in different locations globally was able to win the maximum number of tenders offered by the French government.

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SunPower’s Recent Deals

SunPower is a subsidiary of integrated global oil and gas company TOTAL S.A. (TOT). TOTAL gets a foothold in the renewable energy space through SunPower. And SunPower is living up to the expectation of its holding company.

On Jul 6, 2016, SunPower announced that it has sold a controlling interest in the Henrietta Solar Project, with a capacity of 102 MW, in Kings County, CA, to Southern Company’s (NYSE:SO) subsidiary, Southern Power (read more: Southern Company Buys Solar Project Stake from SunPower).

On Jun 28, 2016, SunPower announced that it has started to construct a 4 MW SunPower solar power system at three parking areas of the California State University, Fullerton (read more: SunPower to Build 4MW Solar Units at CSUF Campus).

The bottom line of all these eco-friendly initiatives is to lower carbon emission and also to lower dependence on fossil fuel for power generation thus reducing pollution.

Global Targets in Solar Energy

Harnessing solar energy to generate electricity has been gaining ground on a global scale. Both China and India are aiming to add 100 gigawatt each of solar electric generation capacity to their existing system. This will certainly bring more projects for solar companies like SunPower, First Solar, Inc. (NASDAQ:FSLR) and ReneSola Ltd. (NYSE:SO) among others.

Zacks Rank

SunPower Corporation currently has a Zacks Rank #3 (Hold).

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