Solar project developer and operator ReneSola has signed an exclusivity agreement to sell its 206.8MW of Distributed Generation (DG) operating assets in China.
The agreement has been signed with an affiliate of Canada’s Brookfield Asset Management (BAM), which invests in renewable power businesses including more than 200 hydroelectric facilities.
The affiliate company intends to acquire the project-based special purpose vehicles (SPVs) associated with the DG operating assets, currently owned by ReneSola subsidiary Zhejiang ReneSola Investment.
ReneSola chairman and CEO Xianshou Li said: “This transaction will substantially reduce the company’s leverage ratio and significantly improve cash flow and liquidity.
“Upon completing this transaction, the proceeds from the sale of the DG operating assets will provide us with more resources and flexibility to deploy our capital.”
“We continue to pursue opportunities to develop, build and monetise small-scale and DG projects in China and other geographies, and believe our strategy meets the development trend of solar energy.”
It is still uncertain that the two companies will enter a definitive agreement for a potential transaction. There is also no guarantee to the form, terms or timing of any transaction even if an agreement is reached between the parties.
In March this year, ReneSola formed a strategic partnership with Green City Energy, a subsidiary of Green City, to jointly develop four solar parks in the south of France that will have a capacity to generate nearly 105 million kilowatts per hour of solar power annum.