TransCanada (TRP +1.96%) is known much more for its Keystone XL pipeline, but the company is also looking at other ways to profit just in case this project goes south. The company just recently announced that it will be spending approximately $450 million on solar projects through Canadian Solar (CSIQ 3.75%) over the next several years.
This isn't the first time an oil company, or region for that matter, has made some big purchases of solar power. In hopes of increasing its oil exports via reducing domestic demand, countries in the Middle East expect to spend about $155 billion on solar projects across the Arabian Peninsula. Saudi Arabia alone expects to install nearly 10 times the current solar capacity in the U.S. today. What do oil companies see in solar? Tune in to the following video, where fool.com contributor Tyler Crowe discusses what is making solar power attractive for these companies and causing other oil companies to get on board with solar power.
