SunPower Keeps Racking Up Deals (SPWRA, GE)

SunPower Corporation (NASDAQ:SPWRA)is reaping the rewards today from two separate announcements.  The company’s pact in California is coming to fruition, and a new 2.2 megawatt contract came from Italy.  SunPower may not be immune to the woes in the sector nor immune to the woes of the economic environment, but it looks to be one of the current winners.

SunPower completed a 2.2 megawatt solar power system at three sites in Lake County, California. The system generates 94% of the electricity used by the facilities, which include the county jail and two wastewater treatment plants.

A unit of General Electric Company (NYSE:GE) financed and owns the system, together with the renewable energy credits. The system is expected to avoid over 131 million tons of carbon dioxide emissions over the next 30 years, and could save the county up to $5 million in electricity costs over the next 20 years.

SunPower also announced a new project for 2.2 megawatts of generation in Tolentino, Italy. The project is planned to include 7.1 megawatts of capacity and is expected to be built by the end of 2009. Regional Italian banks are providing the funding.

These projects, though small, contribute to the overall national plans to increase electricity generation from renewable sources. President Obama plans to double US renewable generation (to about 7%) by 2012, and the European Union has set a 20% target by 2020. It will take a lot of 2.2 megawatt projects to meet those goals.

Paul Ausick
February 19, 2009