ReneSola sells two PV farms in Bulgaria as part of its strategic shift

ReneSola has sold two solar projects in Bulgaria to a private equity fund Solar World Invest Fund SIF ("SWIF"). 5MW Nove ECO and 4.7 MW MG Solar utility scale PV solar farms are located in Sliven province, in the Eastern part of the country.

The announcement released today by ReneSola explains that the both PV power plants “have produced attractive cash flows".

"However, our current project development strategy is to build and transfer select projects in order to enhance our cash flow and pay down debt,” said ReneSola’s chief executive officer Xianshou Li. “This sale is another milestone in our strategic transformation into a leading downstream developer. We look forward to additional monetization this year as many projects are completed from our 641 MW pipeline."

Because these projects were deemed as long-term assets on the balance sheet since end of 2013, the sale will be booked as disposal of assets and have no direct impact to the Company’s revenue, according to the announcement.

ReneSola’s full year results for 2015, published earlier this month, demonstrated that the sale of solar projects was a large source of the company’s income, with projects amounting to 72.8 MW being sold over the year.

Nove ECO and MG Solar, both PV farms developed by ReneSola, were powered in 2012, when Bulgaria’s PV sector was growing rapidly. However, since 2013, despite the promisingly high level of solar irradiation in the country, Bulgaria not demonstrated any significant growth in the global PV market share.