SunEdison, which is a subsidiary of MEMC Electronic Materials (WFR), announced it has sold another 33MW in solar systems in Italy and Spain to German investment company KGAL. KGAL purchased 20MW last quarter bringing the total to 53MW which WFR will continue to maintain and operate under long term agreements.
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Pancho Perez, General Manager of SunEdison for Europe, Middle East, North Africa and Latin America commented, "This transaction demonstrates SunEdison’s ability to create attractive solar investments with innovative financing and proven cost structures. It also proves our commitment toward the Italian and Spanish solar markets, where we continue to develop and build outstanding projects, as well as support top local developers. We are very pleased to partner with KGAL, one of Europe’s leading investors in Renewable Energy and look forward to expanding our relationship with future projects."
Shares of WFR are up about 3% today on the news and are up 4 out of the past 5 days. The stock is coming off levels not seen in nearly 10 years and there is a decent chance we have seen a low put in around that $4.50 level. While the volume levels don’t look great yet (higher volume buy volume, low volume selling), we may be witnessing a double bottom base down here. I won’t be completely convinced until the stock can get back above the 50 day moving average and hold there.
The European renewable energy market is really taking off. European nations continue to make progress towards the 20% renewable energy by 2020 Renewable Energy Target. Recent decisions by the European Parliament to exclude solar air heaters from counting towards the Renewable Energy Target means countries wanting to meet the target will have to rely heavily on photovoltaics when it comes to solar. I would expect Euopean photovoltaics manufacturers and installers to do very well over the next 10 years.