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ReneSola Sells Solar Projects in China of 22.3 MW Capacity

Anthony Russo 2019-10-10 01:00 AM

ReneSola Ltd. (NYSE: SOL) announced its second large-scale deal of the week on Wednesday, sending its stock up more than 5% to $1.38 per American depositary share intraday.

In a statement today, the Shanghai-based solar project developer said it has sold 11 rooftop distributed generation (DG ) projects in Zhejiang Province to a state-owned enterprise focused on the solar industry. The projects hold an aggregate capacity of 20.6 megawatts (MW), ReneSola said.

The company also announced that in a separate agreement, it sold three small-scale DG projects in Shanghai with a combined capacity of 1.7 MW to an undisclosed party.

“With increased activity in project sales, our business momentum has accelerated, and we are confident in our revenue expectations for the third quarter and beyond. We continue to look for opportunities to monetize our China DG assets, as we transform into an asset-light project developer,” Shelley Xu, the chief executive officer of ReneSola, said in a statement today.

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Earlier this week, ReneSola announced that Aberdeen Standard Investments (ASI) acquired its solar farms in Poland with an aggregate capacity of 55 MW - its largest completed overseas portfolio for sale.

While ReneSola’s shares gained on Wednesday on the news, its stock has suffered since on Friday the Trump administration said it plans to reinstate tariffs of 25% on previously exempted bifacial solar panels, slated to take effect on Oct. 28. 

ReneSola was not immediately available for comment when contacted by CapitalWatch.

In the third quarter, the company expects to generate revenue in the range of between $15 million and $20 million, as it stated in its second-quarter financials.

As reported by the science journal Nature in July, China's photovoltaic capacity is expected to reach at least 400 GW by 2030 and is estimated to power 10% of the country's energy needs.