GCL & Fuyang tie up on 200 MW in China

Under the terms of the agreement, renewables investor Fuyang will buy PV project companies run by Suzhou GCL New Energy, a unit of GCL New Energy. The two companies will enter into separate share purchase agreements for each of the project companies, according to a statement to the Hong Kong stock exchange. They did not reveal additional details about the planned solar projects.

As part of the deal, Suzhou GCL New Energy will provide EPC services for solar installations developed by the project companies. It will also provide O&M services once projects become operational. GCL New Energy described the arrangement as part of its asset-light approach to solar development.

Fuyang will buy shares in each project company based on their paid share capital, EPC fees for their projects, permitting costs and unspecified consulting fees, in addition to a CNY 100,000 ($14,670) premium on each transaction. It will hold shares in the project companies for periods of up to five years, with Suzhou GCL New Energy retaining preferential rights to repurchase those shares at its discretion.

Earlier this year, GCL New Energy Investment — a unit of the Chinese PV group — announced plans to issue $254 million of green bonds. It also purchased a project pipeline of eight solar projects in the U.S., with a total capacity of 68.5 MWGCL New Energy’s total installed solar capacity in China stood at roughly 3.51 GW at the end of 2016, up 114% from a year earlier.