Published on January 6th, 2014 | by Mridul Chadha0
ReneSola To Sell 3 Solar PV Projects Of 60 MW Capacity To Chinese Company
NYSE-listed ReneSola has signed an agreement with a Chinese company to sell three utility-based solar power plants with a total generation capacity of 60 MW. The utility-scale power plants are located in China’s Qinghai and Xinjiang provinces and are connected to the grid.
ReneSola is a solar PV products solution provider which has been looking to expand into new and emerging solar power markets. The company has decided to sell the power plants to reduce its debt and increase cash flow.
“Once completed, this deal will enable us to decrease our debt level and increase our cash flow, which will help us improve our financial position. Thus, we will have greater flexibility to further expand our business in new and existing markets,” said Mr. Xianshou Li, ReneSola’s chief executive officer.
The financial details of the deal have not been shared yet. The sale would help ReneSola to concentrate on moving into new markets. The company announced plans to set up solar PV module manufacturing plants in India to circumvent the possible import duties. It also entered the US rooftop solar leasing market.
The power plants will be sold to a Chinese company, Jiangsu Ackome. The company manufactures solar mounting structures and other equipment for setting up solar PV projects. The company, in 2011, acquired a renewable energy projects developing company Beixiang Renewable Energy Development (Qinghai) Co., Ltd. Since then, Akcome has set up a number of subsidiaries which develop and investment in solar power projects.
The private sector is abuzz with activity on back of the tremendous policy support from the Chinese government. The government has revised its initial solar power capacity addition target of 5 GW to 40 GW by 2015.