SPI Solar to acquire six PV projects in China

Solar Power’s subsidiary SPI Solar Power Suzhou has agreed to acquire six PV projects in China from ZhongNeng GuoDian New Energy Development and Investment Jiangsu.

An agreement to this effect was signed between both the companies.

Under the agreed terms, SPI Solar will acquire PV projects totaling 360MW, currently under construction in the country.

The projects to be acquired include a 40MW project in Chifeng City, 60MW in Kezuo County, 50MW in Shangdu County.

The deal also includes 30MW in Chayou County, a 130MW project in Zhongwei City, Ningxia and a 50MW development in Yanyuan County, Sichuan.

The projects are anticipated to be connected to grid from the end of 2014 to the mid-2015.

SPI Solar Power will initially pay RMB140m ($22.9m) by 20 November 2014 to secure the deal.

The final purchase price for the six projects will be decided after additional due diligence upon completion of the projects.

SPI Solar Power Suzhou has also signed a framework purchase agreement with ZhongNeng GuoDian Green Ecological Cooperation and Development Jiangsu with the intention to acquire ZhongNeng New Energy for RMB100m ($16.3m).

Solar Power chairman Xiaofeng Peng said: "We are pleased to announce these agreements and our intention to acquire the six PV projects, comprising a total of 360 megawatts ("MWs") in China, and ZhongNeng New Energy, a proven PV project development platform with an excellent pipeline.

"By adding these projects to our portfolio and acquiring this development company, we expect to increase our scale and future cash flows and expand our development capabilities in key strategic regions, strengthening SPI Solar’s leading position as one of the largest PV development companies in this market."

Solar Power plans to acquire further PV projects using SPI Solar Power Suzhou as an investment platform.