PV project developer Solar Power Inc (SPI) will enter another new regional market, acquiring an 80% stake in a wholesale distribution business in Australia.
Headquartered in Shanghai with operations in various locations, vertically integrated SPI has agreed to purchase 80% of outstanding capital stock held by Solar Juice, a company described by local analysis firm SolarBusinessServices as Australia’s leading wholesale PV distribution business by volume in 2013 and 2014.
While the transaction remains subject to closing conditions, SPI claimed the deal is worth around US$25.5 million of SPI common stock. Solar Juice distributes PV panels, inverters and components as well as complete systems. The distributor will be bought through SPI’s subsidiary SPI China Limited.
In a statement announcing the news, SPI said that while the residential sector remains the biggest market segment in Australia at present, SolarBusinessServices has highlighted a doubling of the large commercial segment during 2013. The research firm apparently also noted that opportunities exist for EPC contractors of large-scale solar as well as an expanding market for power purchase agreements (PPAs).
“We have been evaluating for some time the best entry point into the very promising Australia market, and we are confident this transaction gives SPI the strongest local platform to address this tremendous market opportunity,” Xiaofeng Peng, chairman of SPI, said.
Entry into another new market follows SPI’s move into Latin America, after it was revealed last week that the company plans to develop more than 100MW of projects in Panama.