GCL New Energy, a subsidiary of GCL-Poly has signed a deal to sell 7 operational solar power plants in China with an aggregate installed capacity of approximately 294MW to one of the five largest state-owned electric utility enterprises in China, China Huaneng Group. Image: GCL New Energy
International renewable energy provider GCL New Energy, a subsidiary of GCL-Poly has signed a deal to sell 7 operational solar power plants in China with an aggregate installed capacity of approximately 294MW to one of the five largest state-owned electric utility enterprises in China, China Huaneng Group.
The deal, subject to shareholder agreement is valued at approximately RMB 1.08 billion (US$ 156.53 million). GCL New Energy is selling the PV power plants in a debt-for-equity type swap to reduce its high debt burden.
Both companies were said to be in discussions to “reach and execute more agreements in relation to disposals of solar power plants in the near future.”
As at 30 September 2019, the aggregate net assets of the six GCL New Energy subsidiaries that owned the 7 operational solar power plants was said to have amounted to approximately RMB 925 million) (US$134 million).
Recently, diversified renewables firm Shunfeng International Clean Energy (SFCE) sold 11 PV power plants in China to China National Nuclear Power Co for RMB 641 million (US$91.2 million). However, SFCE said that the sales transaction on the PV assets would mean a loss of around RMB 705 million (US$100.2 million).
Major changes to China’s PV support mechanisms and massive FIT payment delays by utilities to PV plant owners and operators have financially squeezed many PV project developers since May 2018, resulting in heavily discounted sales deals on PV assets.
Jun 15 - Jun 16, 2021
The Utility Solar Summit UK will focus entirely on the opportunities in the UK ground-mount space and feature the new technology and advanced innovations allowing asset owners to improve yield in a subsidy free market. Listen to senior market leaders share stories of their successes and manufacturers pushing the envelope for solar PV whilst taking advantage of our enhanced networking features to connect you with your peers onsite; realising the potential of UK utility scale deployment from 2020 and beyond.
Mar 10 - Mar 12, 2021
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Understand fully the technical and logistical supply chains that determine the production and performance of solar modules, including all related factors impacting quality, reliability & bankability. This event will be run as a live event in Penang for delegates able to attend and will also welcome virtual delegates via streamed content and online networking.