SunPower Corporation (NASDAQ:SPWR)
The stock pulled back 6.94% to end the regular trading session at $7.11 on a day characterized by low volume trading. As the market continued to digest the asset transaction announcement, SunPower moved up 0.14% in afterhours trading to close the day at $7.12.
The regular session losses and the after-hour’s session gains left SunPower up 7.6% since the beginning of the year and down 16.6% over the last 12 months. In the last 12 months, SunPower shares have dipped to a low of $5.84 and peaked at a high of $11.70.
Acquisition of switchyard
On September 25, SunPower Corporation (NASDAQ:SPWR) issued a press release stating that it had finalized the sale of the Don Héctor switchyard that links the 100-megawatt El Pelicano solar project with the Integrated Central System (SIC) of Chile.
The release said that the switchyard was acquired by Transelec S.A., the leading power transmission company in Chile. Financial details of the transaction weren’t disclosed, and this may have weighed on the stock. However, SunPower Corporation (NASDAQ:SPWR) and Transelec have undertaken investments worth $17.9 million.
Transelec is responsible for the transmission of power that lights up homes of 90% of Chileans who live between Arica and Chiloé. The company also owns 78% of the national power transmission lines in the Central Interconnected System (SIC), which is connected to the 100-megawatt El Pelicano solar project via the Don Héctor switchyard.
According to SunPower Corporation (NASDAQ:SPWR), the Don Héctor switchyard can be scaled to accommodate interconnection for future projects.
The Don Héctor lies 6.5 kilometers from the El Pelicano solar project. SPWR is developing the El Pelicano project in Chile’s La Higuera (Coquimbo Region). The project is expected to be operational by the end of 2017. When completed, the El Pelicano project will have a capacity to supply 300 gigawatt hours per year of energy. The project will serve Chile’s Metro de Santiago, the underground railway network of the city of Santiago.
Seeing value in solar power
SunPower Corporation (NASDAQ:SPWR) portrayed the acquisition of the Don Héctor switchyard by Transelec as demonstrating a view that Transelec sees value in investing in solar. Transelec sees the acquisition of Don Héctor switchyard as giving it the infrastructure necessary to transmit renewable energy as well as partake in the growth of Chile’s solar energy market.
The El Pelicano project consist of a solar power plant dubbed SunPower Oasis, which is billed as a fully-integrated, cost-effective solar deployment. SunPower Corporation (NASDAQ:SPWR) said that the SunPower Oasis features optimal land use and an efficient solar panel cleaning capability.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.