ReneSola has signed a non-binding agreement with Brookfield Asset Management (Brookfield) to sell its 206.8MW distributed generation (DG) operating assets in China.
Under the agreement, ReneSola and Brookfield will negotiate exclusively on this transaction. Brookfield is planning to acquire the project-based special purpose vehicles (SPVs) associated with the assets.
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 monetize small-scale and DG projects in China and other geographies, and believe our strategy meets the development trend of solar energy.”
ReneSola also said that there is no assurance for the two companies will enter into a definitive agreement to take the transaction further and there is also no assurance as to the form, terms or timing of any transaction even the parties reach on an agreement.
In June, ReneSola had secured additional financing of €36m from Sequoia Economic Infrastructure Income Fund for its 55MW projects in Poland.
All of these projects are under Poland’s Contract for Difference (CFD) regime and are eligible for 15 year guaranteed tariff and they are expected to be completed in three phases.
The first 14MW projects are being constructed and could reach commercial operation by the end of this year’s second quarter.
Construction of the remaining 41MW projects is expected to take place in the second half of this year and could be connected to the grid later this year.