Emeren Group Purchases an 86 MWp Solar Portfolio in Spain

Rhea-AI Summary

Emeren Group Ltd (Emeren) (NYSE: SOL) successfully acquires an 86 MWp utility-scale solar project portfolio in Spain from Negratin Global Services, comprising 13 projects expected to produce 166,471,371 kWh/year of energy. The projects are set to begin construction late 2024 and be connected to the grid by early 2025, with the capacity to provide energy to 51,380 households and save 19,544 vehicle emissions annually. Emeren also plans to develop Battery Energy Storage Systems, resulting in the saving of 35,903.9 tons of CO2 per year. Emeren Spain has an advanced-stage portfolio of over 300MW in solar and 100 MWh of storage, with a 2024/2025 pipeline of over 4 GWs.

Insights

Energy Sector Analyst

The acquisition of the 86 MWp solar project portfolio by Emeren Group Ltd represents a strategic expansion in the renewable energy sector, particularly within the Spanish market. The investment in Ready-to-Build projects indicates a proactive approach to leveraging Spain's solar resources. The expected annual production of 166,471,371 kWh/year aligns with growing energy demands and the shift towards sustainable energy solutions.

From an energy perspective, the integration of Battery Energy Storage Systems (BESS) is a forward-thinking move, enhancing grid stability and energy management. This synergy between solar generation and storage is a growing trend in the industry, reflecting an evolution towards more resilient and flexible energy systems.

The environmental impact, quantified by the projected annual CO2 savings and vehicle emission reductions, illustrates a clear commitment to carbon footprint reduction. This is increasingly relevant as investors and consumers alike prioritize environmental, social and governance (ESG) factors in their decision-making processes.

Financial Analyst

Emeren's acquisition of the solar project portfolio is a significant financial move, indicating a robust capital investment strategy in renewable infrastructure. The development of utility-scale projects is capital-intensive and the successful connection to the grid by early 2025 will be crucial to realize returns on investment. The scale of the projects, sufficient to power over 50,000 households, suggests a substantial revenue potential from energy production.

Moreover, the collaboration with Negratin Global Services and advisory support from ATZ Investments reflects prudent risk management and due diligence. Such partnerships can provide financial leverage and expertise, potentially improving project efficiency and profitability.

Investors should monitor the progression of these projects closely, as their successful execution could significantly enhance Emeren's market position and financial performance within the renewable energy sector.

Environmental Policy Expert

The strategic vision of Emeren Group in advancing renewable energy, as evidenced by this transaction, aligns with broader environmental policy goals aimed at reducing greenhouse gas emissions. The commitment to BESS technology represents an alignment with policy incentives that favor innovation in renewable energy storage, which is critical for the integration of intermittent energy sources like solar into the energy mix.

The potential environmental benefits, such as the annual saving of 35,903.9 tons of CO2, support Spain's national targets and international commitments under the Paris Agreement. The policy landscape is increasingly supportive of such projects, which could lead to further regulatory incentives and potentially enhance the profitability and viability of renewable energy investments.

STAMFORD, Conn., Dec. 28, 2023 /PRNewswire/ -- Emeren Group Ltd ("Emeren" or the "Company") (www.emeren.com) (NYSE: SOL), a leading global solar project developer, owner, and operator, today announced the successful purchase of an 86 MWp utility-scale solar project portfolio in Spain from Negratin Global Services, an industrial and service group that operates in energy, industry and installations within the renewable energy space. 

This various state-of-the art portfolio comprises 13 utility-scale solar projects ranging from 6MW DC to 14 MW DC. They are classified as Ready-to-Build ("RTB") projects and are expected to produce 166,471,371 kWh/year of energy. The portfolio of projects is expected to begin construction late 2024, with the final projects to be built and connected to the grid by early 2025.  All 13 projects are located in the center of Spain and will have the capacity to provide enough energy to 51,380 households in the local region, along with the saving of 19,544 vehicle emission every year. 

Emeren plans to develop and build Battery Energy Storage Systems ("BESS") on the already permitted site for solar projects, as part of the transition to a low-carbon future, resulting in the saving of 35,903.9 tons of CO₂ per year.  Emeren Spain has an advanced-stage portfolio of over 300MW in solar and 100 MWh of storage, with a 2024/2025 pipeline of over 4 GWs.

Yumin Liu, CEO of Emeren Group, commented, "We are excited to acquire the portfolio of projects from Negratin Global Services as they fit well with Emeren's strategic vision for advancing renewable energy in Spain and globally.  Partnering with Negratin reinforces our dedication to expanding our renewable energy portfolio and showcasing our successful track record in acquiring and selling utility-scale projects."

Enrique Diaz Hinojosa, CEO of Negratin Global Services, added, "This aligns with Negratin's commitment to renewable energy and contributes to sustainable practices. We trust Emeren's expertise for successful project development, supporting our shared vision for a greener future."

Negratin Global Services selected ATZ Investments, a renewable and infrastructure financial advisory boutique specializing in mergers and acquisitions, to support on the project transaction.   

About Emeren Group Ltd

Emeren Group Ltd (NYSE: SOL) is a leading global solar project developer, owner, and operator with a pipeline of projects and IPP assets totalling over 3 GW, as well as a storage pipeline of over 10 GWh across Europe, North America, and Asia. The Company focuses on solar power project development, construction management and project financing services with local professional teams across multiple countries. For more information, go to www.emeren.com

About Negratin Global Services

Negratin Global Services, S.L., a Spanish business group with more than 25 years of history, carries out its activity through various business areas, such as promotion, construction of energy infrastructure and facilities, operation and maintenance, being a reference worldwide as EPC contractor in the photovoltaic sector. With headquarters in Granada and delegations in Madrid, Córdoba, and Malaga, in Spain, and international delegations in Mexico, Panama, Honduras, Colombia, Chile, and Japan.

Safe Harbor Statement

This press release contains statements that constitute ''forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Whenever you read a statement that is not simply a statement of historical fact (such as when the Company describes what it "believes," "expects" or "anticipates" will occur, what "will" or "could" happen, and other similar statements), you must remember that the Company's expectations may not be correct, even though it believes that they are reasonable. The Company does not guarantee that the forward-looking statements will happen as described or that they will happen at all. Further information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements is included in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on Form 20-F. The Company undertakes no obligation, beyond that required by law, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, even though the Company's situation may change in the future.

For investor and media inquiries, please contact:

Emeren Group Ltd
Suzanne Wilson
+1 (510) 631 6550
Suzanne.wilson@emeren.com

Emeren Group Ltd - Investor Relations
ir@emeren.com 

The Blueshirt Group 
Gary Dvorchak
+1 (323) 240-5796
gary@blueshirtgroup.com 

 

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SOURCE Emeren

FAQ

What did Emeren Group Ltd (Emeren) (NYSE: SOL) announce?

Emeren announced the successful purchase of an 86 MWp utility-scale solar project portfolio in Spain from Negratin Global Services.

How much energy is the project portfolio expected to produce?

The project portfolio is expected to produce 166,471,371 kWh/year of energy.

When are the projects expected to begin construction?

The projects are expected to begin construction late 2024 and be connected to the grid by early 2025.

What is the capacity of the projects to provide energy to?

The projects have the capacity to provide energy to 51,380 households in the local region.

What are Emeren's future plans for the solar projects?

Emeren plans to develop Battery Energy Storage Systems on the permitted site for solar projects, resulting in the saving of 35,903.9 tons of CO2 per year.