ReneSola has signed a memorandum of intent (MOI) to sell three large-scale PV power plants in China to decrease the company’s debt level and increase cashflow.
The plants, totalling 60MW of generation capacity, will be purchased by Jiangsu Akcome Solar Science & Technology, which signed the deal with ReneSola.
With the sale ReneSola aims to improve its financial position. According to Renesola chief executive Xianshou Li, the sale will give the company “greater flexibility to further expand our business in new and existing markets”.
The tier one manufacturer recently closed its Phase I polysilicon manufacturing plant in Sichuan, central China after the facility failed to reduce production costs. However Phase II of the plant is expected to run at full capacity throughout 2014.
Last year the company reported record shipment and revenue levels in the third quarter due mainly to increases in its PV module and original equipment manufacturer (OEM) businesses.
If the forthcoming sale – terms of which are yet to be finalised – takes place, the company looks to be in the minority in the Chinese PV industry that are downsizing downstream operations and focussing more on manufacturing. Many of Renesola’s domestic rivals are currently thought to be going in the opposite direction, increasing downstream activities while cutting manufacturing.
Located in the Qinghai and Xinjiang provinces of China, the three power stations which are expected to be sold to Jiangsu Akcome Solar Science & Technology are all grid-connected.