HomeMost PopularInvesting Emeren Group Acquisition Brings Bright Future for Europe's Solar Market

Emeren Group Acquisition Brings Bright Future for Europe’s Solar Market

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Emeren Group Ltd. SOL recently finalized the acquisition of an 86 Megawatt-peak (MWp) utility-scale solar project portfolio in Spain from Negratin Global Services.

The portfolio encompasses 13 utility-scale solar projects ranging from 6 megawatt direct current (MW DC) to 14 MW DC. These projects fall under the Ready-to-Build category and are anticipated to yield 166,471,371 kilowatt-hour (kWh)/year of energy.

All 13 projects, slated to commence construction in late 2024 and be linked to the grid by early 2025, will have the capacity to supply energy to 51,380 households and avert 19,544 vehicle emissions yearly.

Emeren’s Expansion in Europe

Emeren is steadily garnering traction in Europe’s solar market. The company appears to be progressively broadening its reach in Germany, France, Spain, Poland, Hungary, and Italy. Europe contributed 68% to the total revenues of the company in the last reported quarter.

Emeren Spain has an advanced-stage portfolio of over 300 MW in solar and 100 MWh of storage, with a 2024/2025 pipeline of over 4 gigawatts (GW).

Such strategic initiatives are likely to yield substantial gains for the company, especially in the light of SolarPower Europe’s recent projection that new solar photovoltaic capacity is anticipated to surpass 50 GW of deployment in 2023.

The solar projects are expected to reach 85 GW in 2026 from their current levels.

Promising European Solar Market Outlook

The optimistic growth prospects for Europe’s solar market are expected to benefit other solar companies significantly, such as:

Canadian Solar CSIQ, Maxeon Technologies MAXN, and SolarEdge SEDG, each of which has a significant stake in this region’s solar market.

Canadian Solar, for example, has a presence in various European countries, including Germany, the U.K., Poland, Spain, Italy, France and the Netherlands.

Maxeon Solar supplies modules for Italy’s largest Airport PV installation in Torino and is expected to experience an improvement in sales according to the Zacks Consensus Estimate. Meanwhile, SolarEdge has a strong presence in Germany, the U.K., and Switzerland and has a long-term earnings growth rate of 18.7%.

Price Performance

Over the past six months, shares of SOL have declined by 26.9% compared with the industry’s 28.4% drop.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

Emeren Group currently carries a Zacks Rank #4 (Sell).

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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