ReneSola Announces Sale of 55 MW of Solar Farms in Poland, Again
The Chinese solar farm developer nearly reached a sale for the Poland portfolio last year, but the deal was never closed. Today, shares in ReneSola tumbled nearly 8% on the latest turn of the U.S.-China trade war.
ReneSola Ltd. (NYSE: SOL) announced on Monday that Aberdeen Standard Investments (ASI) has acquired its solar farms in Poland, with an aggregate capacity of 55 MW.
The solar project developer, based in Shanghai, said in a statement today that it has reached a deal on a portfolio containing 34 individual solar farms to the Scottish global asset manager. Under the agreement, the two sides have arranged a 15-year contract-for-difference (CFD) on each of the projects, ReneSola said. The company added that the CFD is a "support mechanism, ensuring stability of electricity pricing for the projects."
The deal was the sale of ReneSola's largest completed solar project, according to a statement it made last month. 12 MW of Renesola's completed projects in Hungary and Canada remain for sale.
(Source: ReneSola Q2 Report)
"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 today.
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.
ReneSola's 55MW portfolio in Poland was expected to have been sold a year ago to Chroma Impact Investment, a global investor in renewable energy. In November 2018, ReneSola said it has signed a letter of intent for sale with Chroma, though the outcome of the deal was not disclosed.
Previously, 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 had almost 1,700 projects that were either completed, in operation, or in late-stage development as of June.
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.
Despite the announcement of the sale, the stock in ReneSola plummeted 8% Monday, to $1.29 per American depositary share, sharing the fate of all Chinese solar stocks. In another turn of the trade war tactics, the Trump administration said it would reinstate tariffs of 25% on bifacial solar panels, to go into effect on Oct. 28, as reported by Bloomberg.