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ReneSola Inc. SOL announced that it has sold 38 megawatt (MW) of solar projects located in Poland to Obton. The portfolio comprises 38 solar utility projects in Poland, with a capacity of 1 MW for each. ReneSola received these solar projects from Poland’s solar power auction in December 2020.
ReneSola has sold these projects to Obton at the "Notice to Proceed" stage. However, on closing of sale, ReneSola Power will be responsible for EPC management, project financing and final delivery of the projects to Obton at the Commencement of Operation Date stage.
The deal further strengthened ReneSola’s position in Poland, and demonstrated its ability to complete a solar project and monetize the same. ReneSola is gradually spreading the business in the downstream segment of the solar industry across Europe.
ReneSola Scope in Poland
Earlier this year, the Poland Government announced new energy policy until 2040, which is focused on emission reduction. Per the Energy Plan, the Polish Government will reduce coal’s contribution in the power generation mix from 72% in 2020 to 56% in 2030 through utilization of offshore wind projects, and the development of onshore wind and solar projects. The Government expects total solar capacity between 5 gigawatt (GW) and 7 GW in 2030 from the current level of 3.6 GW.
The addition of new solar projects will create more opportunity for ReneSola in Poland solar market. Last year, the company sold 16 MW solar projects to Modus Asset Management. It is quite evident that the Polish Government will require conducting more solar power auction in the near future to meet its solar capacity. ReneSola, with its knowledge in developing solar projects in Poland, will have a fair possibility to win more solar projects in Poland.
Development of Solar Assets Globally
Per International Energy Agency research report, solar energy additions on a global basis will see an increase to meet electricity needs and lowering emissions. The introduction of new technology is substantially lowering the cost of installation of utility scale solar projects and availability of sunlight across the globe, thereby making solar projects popular. Per IEA, solar PV development will continue to increase and annual additions are expected to reach 162 GW by 2022.
Amid global development of solar projects, other solar energy companies like Canadian Solar Inc. CSIQ, SunPower Corporation SPWR and Enphase Energy, Inc. ENPH, among others, will benefit from higher usage of solar energy.
In the past year, ReneSola’s shares have outperformed the industry’s rally.
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ReneSola currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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