ReneSola has agreed a deal to sell three of its utility-scale solar PV plants to Chinese manufacturing company Jiangsu Ackome. The three plants have a combined capacity of 60 MW and are connected to the national grid in the Chinese provinces of Qinghai and Xinjiang.
According to company representatives, ReneSola agreed to the sale in order to ease its cash flow and reduce debt levels. "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," said ReneSolas CEO, Xianshou Li. "Thus, we will have greater flexibility to further expand our business in new and existing markets."
With ReneSola keen to explore new markets within the solar sector, the deal will go some way towards enabling the company to fulfill its expansion aims, which are thought to include plans to set up solar PV module manufacturing facilities in India. Such a proposed move is viewed as an effort by ReneSola to avoid any possible import duties currently imposed on Chinese-made products. The PV solution provider has also entered the rooftop leasing market in the U.S. a market it sees as lucrative.
For Jiangsu Ackome, the acquisition of these three power plants adds to the companys growing portfolio of renewable energy investments and solar power projects, which since 2011 have been developed under the umbrella of the Beixiang Renewable Energy Development (Qinghai) Co., Ltd.
Full financial details of the deal have yet to be disclosed.
Japanese contract
Meanwhile, ReneSola's expansion efforts received a welcome boost this week when the Chinese solar panel maker won a contract to supply 420 MW of PV products to 10 ground-mounted PV installations in Japan. Although the company has yet to disclose who the buyer was, it did reveal in a statement on its website that the deal was its biggest yet in Japan.
"This is the biggest order ReneSola has secured in Japan," the company's director of investor relations, Laura Chen, told Bloomberg, adding that ReneSola was now operating at an annual panel production capacity of 2.8 GW.
Delivery of the 420 MW of solar panels to Japan will commence immediately, and the 10 solar farms are expected to be connected to the grid by December 2015.
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