First Solar Buys 150-MW Solar Gen 2 Project in California

Updates

April 2, 2013: Zacks also not sold on First Solar. Reporting:

Currently, the company is working on a major restructuring plan to counter the continuous drop in margins. The fall in margins came in the wake of a precipitous drop in Average Selling Prices due to a supply glut in the market. We also remain concerned about the current macro scenario which does not bode well for solar energy producers who thrive mainly on subsidies and grants. The company presently retains a short-term Zacks Rank #3 (Hold).

April 2, 2013: an investor's opinion on the deal, at SeekingAlpha.

Original Post

If I recall, Enbridge has a sizable stake in First Solar, although that could have changed. Be that as it may, Bloomberg is reporting:

First Solar Inc.  bought the 150- megawatt Solar Gen 2 project in California from an affiliate of Goldman Sachs Group Inc., Energy Power Partners and a third unnamed partner.

Construction is expected to start this year and the project will be done in 2014, Tempe, Arizona-based First Solar said in a statement today. 

Sempra Energy (SRE)’s San Diego Gas & Electric utility will buy power from Solar Gen 2 under a 25-year agreement.

First Solar said 40 megawatts of solar modules from another supplier were already purchased and will be used on the project. First Solar will supply the rest. 

Good news for all. Shares of ENB rose today: either the deal had no impact on ENB or ENB/First Solar was buying solar cheaply.