Shenzhen Energy acquires California solar assets
Shenzhen Energy makes its first move into the US market
24 Oct 2017 | Michael Marray
Solar farm in Fresno County, California. Photo: RecurrentEnergy.com
SHENZHEN Energy Corp is buying three California solar power plants from Recurrent Energy, a subsidiary of solar panel manufacturer Canadian Solar, in a deal valued at $232 million.
“Based on the company’s latest five-year plan, it will follow a two-pronged strategy of helping in the transformation to low-carbon energy suppliers,” Shenzhen Energy said in a statement. “Making acquisitions that can increase the company’s ratio of clean energy production is in line with the company’s development plan.”
Given the oversupply of solar panels in the global market, Canadian Solar now develops its own projects and sells them on after completion. Recurrent Energy is the solar plant construction arm of Canadian Solar. Shenzhen Energy is one of its first Chinese customers for a project in its Canada/US home market.
The three plants are located in the California areas of Rosamond, Tranquillity, and Lemoore, and have all signed long-term contracts to supply power to local buyers.
Shenzhen Energy, which is listed on the Shenzhen Stock Exchange, is actively seeking overseas expansion within the OBOR Initiative.
In January this year, Shenzhen Energy teamed up with Sinohydro Group to win the bidding process for a hydroelectric project in Papua New Guinea. The total investment needed is estimated at $877 million, with project completion in 2020.
It already has one overseas project up and running. Sunon Asogli Power Ghana Co is a joint venture with the China Africa Development Fund. The first phase of the Sunon Asogli project, a 200MW natural gas-fired thermal power station, came onstream in 2012, and a second set of generators began operation earlier this year.
Following the success of the Ghana project, Shenzhen Energy is speeding up its expansion in overseas markets to realize new breakthroughs in supporting the Belt and Road initiative.In addition to projects in Ghana and Papua New Guinea, the company has set up offices in the United States, Serbia, Greece, Italy, and Indonesia, as it seeks overseas opportunities.
Treasury & Capital Markets