GCL New Energy to develop 661 MW of PV projects in China


China’s GCL New Energy Holdings Limited has announced deals that will increase its project pipeline to 661 MW.

The company signed a four-year agreement with Hebei Yuanchen to jointly develop and construct a 500 MW photovoltaic power plant in China’s Hebei province.

The companies plan to ramp up the capacity of the PV project – located in the city of Zhangjiakou — to 500 MW over a period of three to five years.

In addition, GCL has agreed to increase its stake in Inner Mongolia Xiangdao New Energy Development Company Limited to 90.1% in exchange for an investment of CNY 45.05 million ($7.3 million).

Xiangdao has two projects under development in the city of Hohhot in Inner Mongolia, a 31 MW PV power generation plant and a 130 MW building-integrated PV project.

Following the acquisition, GCL and Xiangdao, which will retain 9.9% of its shares, plan to invest millions into the the company, raising Xiangdao’s registered capital from CNY 50 million to CNY 273.6 million. GCL alone will inject some CNY 201.46 million of the amount of fresh capital.

The deal remains subject to regulatory approvals.

GCL expects construction of the Inner Mongolian projects to be completed by the end of the year, with the start of production and sales of electricity scheduled for March.

In August, GCL and its parent company GCL-Poly signed a three-year agreement with China’s Singyes Solar covering upstream and downstream activities, including the development, construction and operation of PV plants.