In June, for instance, the average wholesale price of energy in Poland soared by more than 300%, from over 55 euros per megawatt hour 2 years ago, before the Russian-Ukrainian crisis began. Solar PPAs are still competitive, even with these price hikes, compared to the much higher wholesale energy price.

In Q2, PPAs prices for European solar projects climbed by 19% quarter over quarter and by 47% annually. To begin with, in the company's biggest market, Europe, the PPA prices should benefit the company immensely as they remarkably continue to rise. This section will focus on the company's short-term performance and growth catalyst. Perspective on the Company's Near-Term Future I rate the stock a buy because the valuation metrics and the share repurchase program suggest the company is undervalued. In my discussion, I will put the two aspects in the context of the short-run and long-run view of the company's growth and success.Īs mentioned above, I am bullish on the stock due to the good legislative environment, the strong demand for solar, and the soaring prices. For this article, I will focus on the rising price of the power purchase agreement and the regulatory environment. Looking at the company's business environment, I can attribute the promising trend to some tailwinds. and Europe, investing in renewable energy is more promising at the moment.ĭespite the volatility, the company has been on an upward trajectory since May. With green energy on the rise both in the U.S. Yumin Liu,' we are also aware that the current energy crisis and inflation in Europe is causing significant instability in the region, increasing risks of a recession.'ĭue to the uncertainty caused by the crisis, European investors are currently hesitant to invest in the traditional energy sector.

To explain this trend, I'll refer to the company's Q2 transcript call. The company has lost approximately 27% over the last year in share prices. The company's share prices have been very turbulent due to the current European energy crisis and inflation. ReneSola ( NYSE: SOL) develops and sells power projects in the US, Canada, Europe, and globally.

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