SPI, GD Solar to jointly develop 1.5 GW of PV schemes in China

Oct 23, 2014 - US firm SPI Solar (OTCMKTS:SOPW) said today it will jointly develop 1.5 GW of solar projects in China with local peer GD Solar Co Ltd and, at the same time, buy a total of 160 MW of operational solar parks from it.

More precisely, a Chinese unit of the US photovoltaic (PV) projects developer has entered into several agreements with the solar arm of Guodian Technology & Environment Group Corp Ltd (HKG:1296). One of the deals envisages installing 500 MW of solar systems in China every year from 2015 to 2017. SPI will be responsible for the development and financing of the new projects, whereas GD Solar will be acting as the engineering, procurement and construction (EPC) services provider.

The other agreements call for SPI to acquire 100 MW of operational solar parks in Gansu province for CNY 960 million (USD 156.9m/EUR 23.9m), 50 MW of solar arrays in China’s Inner Mongolia autonomous region for CNY 515 million and an additional 10 MW in Liaoning province for another CNY 100 million. The buyer will pay for two of the deals with a mix of cash and ordinary shares.

SPI Solar has also obtained the right to acquire other solar power facilities, which are currently being built by GD Solar. The US company is majority-owned by China's LDK Solar Co Ltd (NYSE:LDK), which is in provisional liquidation in the US.

(CNY 1 = USD 0.163/EUR 0.129)

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