UPDATE 1-Canadian Solar inks 60 MW supply deal with Fire Energy

Wed Jan 27, 2010 10:03am EST

* Says initial shipments started this month

* Shares up 2 pct

Jan 27 (Reuters) - Chinese solar-cell maker Canadian Solar Inc's (CSIQ.O) said it had agreed to supply 60 megawatts of photovoltaic modules to Spain's Fire Energy Group in 2010.

Fire Energy, a system integrator, said it will promote Canadian Solar's PV products in Spain, Germany and Italy. Initial shipments started this month.

Wednesday's news comes a day after the Italian government said it will unveil a much-awaited plan for new incentives for its rapidly-growing solar energy sector on February 11. [ID:nLDE60P1DH]

However, concerns over a potential deep cut in feed-in tariffs (FIT) in Germany that could hit solar companies around the world has left investors jittery. [ID:nN15221233]

In November, Canadian Solar had said it expects to double shipments in 2010, with major markets, including Germany and Italy driving demand.

Shares of the company were up 2 percent at $23.39 Wednesday morning on Nasdaq.

The stock, off about 30 percent from a year-high it hit earlier this month, is still up eight-fold from a March 2009 year-low. (Reporting by Adveith Nair in Bangalore; Editing by Maju Samuel)

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