ReneSola Ltd. (NYSE: SOL) announced Aberdeen Standard Investments (ASI) obtained a full stake in its completed solar project of ground mounted farms in Poland on Monday.
The solar project developer, based in Shangahi, said its solar project contained a capacity of 55 megawatts (MW), along with 34 state-of-the-art induvial projects, in a statement. The deal, marks the largest MW completed project Renesola had for sale, according to its second quarter financials. 12 MW of Renesola’s completed projects in Hungary and Canada remain for sale.
Also under the agreement, was a 15-year contract-for-difference, meaning ReneSola will pay ASI the difference between the value of the security at the commence and the ending of the contract, ensuring stability of electricity pricing for the projects, ReneSola said.
The stock in ReneSola was sent down near 5 percent, at $1.33 per share on Monday afternoon. On Friday the Trump administration said they would reinstate tariffs on bifacial solar panels, causing ReneSola’s shares to plummet. Bifacial solar panels will face a 25% tariff on Oct. 28, Bloomberg reported on Oct. 28.
“With the completion of this transaction, we have demonstrated our strong execution in project development and our ability to realize profits from the sale of our projects, enabling us to generate cash flow and further strengthen our balance sheet,” Shelley Xu, the chief executive officer of ReneSola, said in a statement.
The last sale came when ReneSola sold its 21 MW community solar project in Minnesota to Nautilus Solar Energy. Nautilus previously purchased 13 MW projects from Renesola in 2017 and 2018.
ReneSola also connected 11 MW of Distributed Generation (DG) projects, along with 26 MW of projects in its development pipeline in Poland, according to its second quarter financial report. The company had almost 1,700 projects pipelines that were either completed, in operation, or in late-stage development
ReneSola’s development of its solar project pipeline, expands in over 10 countries, approximately half of those represent European countries.
ASI, which provides global asset management, controls £525.7 billion of assets worldwide. Dominic Helmsley, the head of economic infrastructure at ASI said the deal with ReneSola marks its fourth investment in the “Polish renewable infrastructure market”.
“We are thrilled to play an active role in the development of renewable energy in Poland, in particular the solar PV sector, which is underpinned by a supportive regulatory framework,” Helmsley said regarding its stake in ReneSola, according to ReneSola’s statement.
With high energy prices across the solar industry, Poland expects to increase its power capacity to at least 200 MWs in the future, due to planned incentives availability for smaller electricity consumers to invest in solar panels, Reuters reported earlier this year.
Last week, Renesola announced $11 million deal, where it sold shares at a discounted price to its existing shareholder Shah Capital Opportunity Fund LP.