In This Article:
Emeren Group Ltd. SOL closed the second phase of its Battery Energy Storage System (BESS) portfolio, as part of the Development Service Agreement (DSA) with Arpinge. The second phase consists of two standalone projects in Sicily, Italy, which brought an additional 162-megawatt (MW) or 1.4-gigawatt hour (GWh) of generation capacity, contributing to the DSA’s total portfolio of 462 MW.
Emeren’s Expansion Plans in Europe
The increasing adoption of clean energy is strengthening the energy storage market across the globe. Europe is expected to witness an increase in its total energy storage from 15 gigawatts (GW) in 2023 to 375 GW by 2050, per BloombergNEF.
To reap the benefits of the aforementioned market, Emeren has been steadily expanding its footprint on the virtue of its well-established presence in the European nations of Poland, Hungary, England, France, Germany, Spain and Italy. In particular, as it continues to utilize its DSA model to monetize projects at early to mid-stages while securing high-quality contracted revenues across its global business, we are witnessing notable DSAs involving storage projects signed by Emeren in Europe.
A notable example of Emeren's DSA partnerships is its agreement with PLT energia Srl, announced in July 2024. This agreement involves the development of a 394 MW portfolio consisting of five advanced BESS in Italy. The latest BESS portfolio completion remains another bright illustration of SOL’s efforts to boost its revenues by monetizing its development expertise through partnerships like DSAs.
As of Sept. 30, 2024, Emeren signed DSA contracts with nine partners for 28 projects spanning over 2.1 GW of capacity, with 84% in battery storage. These projects are expected to bring in more than $69 million in revenues for SOL over the next two-three years. We may expect the 462MW BESS portfolio also to usher in similar revenue growth prospects for SOL.
Opportunities for Other Solar Stocks
Other solar companies that are likely to benefit from the expanding energy storage market in Europe are discussed below.
Canadian Solar Inc. CSIQ: It has a strong presence in Germany, Poland, Spain, Italy, France and the Netherlands. As of September 2024, the company had 32,719 MWh of battery energy storage development project pipeline in Europe, the Middle East and Africa region, including 26,510 MWh in the early-stage pipeline.
CSIQ has a long-term (three to five years) earnings growth rate of 25%. The Zacks Consensus Estimate for CSIQ’s 2025 sales indicates year-over-year growth of 18.4%.
SolarEdge Technologies Inc. SEDG: It has a strong presence in Europe, particularly in Germany, the United Kingdom and Switzerland. In December 2024, SEDG launched its first commercial storage system, the CSS-OD battery, in Germany. This new battery offers an integrated solar and storage solution, which can be used both indoors and outdoors.
SEDG has a long-term earnings growth rate of 1.2%. The Zacks Consensus Estimate for SEDG’s 2025 sales indicates year-over-year growth of 36.7%.
Enphase Energy, Inc. ENPH: Enphase is actively working to capitalize on this growing market by expanding its presence in Europe through strategic partnerships and innovative product launches. The company introduced its IQ Battery 5P in Belgium and France in September and July of 2024, respectively.
Enphase has a long-term earnings growth rate of 3.6%. The Zacks Consensus Estimate for ENPH’s 2025 sales indicates year-over-year growth of 27.7%.