The deal — which is valued at 35.3 million yuan ($5.2 million) — replaces an earlier operations and management agreement for the projects that recently expired. The new three-year arrangement covers capital management services and technology training, but not plant maintenance, according to a statement to the Hong Kong stock exchange.
GCL-Poly, which is a major shareholder of GCL New Energy, is the parent of Suzhou GCL-Poly. GCL New Energy was operating 3.52 GW of solar capacity at 90 locations in China by the end of 2016, from just 1.64 GW a year earlier. It owns 590 MW in Shaanxi province — its biggest market in the country — followed by 326 MW in the Inner Mongolia region and 325 MW in Henan province.
GCL New Energy currently claims a solar development pipeline of roughly 1 GW, including about 360 MW under the Chinese government’s Top Runner program and 250 MW under Beijing’s poverty alleviation scheme. It aims to connect between 1.5 GW and 2 GW of solar to the Chinese grid this year, according to an online statement. It is now nearing completion of 120 MW of capacity in Guangxi — a region in southern China — and 120 MW in the central province of Henan, among other provinces.
Separately this week, GCL New Energy revealed that it had finalized a deal to operate a 50 MW solar project in Yulin, Shaanxi province. China Financial Leasing, a Hong Kong-listed investment firm, has agreed to buy a range of PV equipment — including solar panels and cables — from Nanjing GCL New Energy for 488.3 million yuan. The project near the city of Yulin includes a 300 kV transmission line built by CEE Shaanxi Design. As part of the deal that was finalized this week, China Financial Leasing will lease the assets it has purchased back to another subsidiary of GCL New Energy for a period of 10 years. The arrangement is similar to other deals that the group recently signed for 370 MW of PV capacity throughout China.
Earlier this month, GCL New Energy selected a subsidiary of China Energy Engineering (CEE) to construct a 100 MW solar array in Yangquan, Shandong province. CEE Tianjin — a unit of state-run CEE — will build the project for 423.1 million yuan.