ReneSola Power Announces Sale of 12.3 MW of Projects in Hungary

Rhea-AI Summary

ReneSola Ltd (SOL) announced an agreement to sell 20 solar projects in Hungary to Obton, totaling 12.3 MW of capacity. These projects, operational since 2020, qualify under Hungary's 25-year KAT feed-in tariff scheme. CEO Yumin Liu highlighted the transaction's role in enhancing ReneSola's market position in Hungary, emphasizing their strategy for profitable growth. Both companies view this collaboration as beneficial, aiming to explore further opportunities in Europe despite challenging macro conditions.

Positive

• Successful sale of 20 operational solar projects, improving cash flow.
• Strengthened market position in Hungary, a key solar market in EU.
• Collaboration with a trusted partner, Obton, for future growth opportunities.

Negative

• None.

STAMFORD, Conn., Jan. 8, 2021 /PRNewswire/ -- ReneSola Ltd ("ReneSola Power" or the "Company") (www.renesolapower.com) (NYSE: SOL), a leading fully integrated solar project developer, today announced that it entered into an agreement to sell a portfolio of projects located in Hungary to Obton, a leading international solar investment company headquartered in Aarhus, Denmark.

The portfolio comprises 20 solar plants in five locations, including Sárbogárd, Kömlöd, Szajol, Lukacshaza, and Törökszentmiklós, with a combined capacity of 12.3 MW.  These 20 solar projects, which were successfully connected to the grid in 2020, are now in operation and are qualified under the Hungarian 25-year KAT feed-in tariff scheme.

Mr. Josef Kastner, CEO of ReneSola European Region, commented, "Despite ongoing challenging macro conditions, our team continues to execute on our strategy and optimize our solar assets through strategic sales. Obton remains a valuable partner for us, and we are thrilled to once again collaborate on this transaction. We look forward to working with Obton in Hungary and other geographies across Europe in the future."

ReneSola Power CEO Yumin Liu added, "Over the past several years, we have demonstrated our expertise in developing and operating solar projects, closing financing transactions and monetizing projects to generate profits in the downstream segment of the solar industry across Europe.  Hungary remains an important market for solar power in the EU, and this transaction further strengthens ReneSola Power's market position in the country.  We are proud of our team, and believe we are well-positioned to drive more profitable growth in the quarters ahead."

Mr. Anders Marcus, CEO and Co-founder of the Obton Group, said, "ReneSola Power is a trusted partner of Obton's, and we are excited to increase our participation in the Hungarian solar market with the support from ReneSola Power. Importantly, we are encouraged that we were able to enter into an agreement despite the challenging circumstances.  We are also proud of our team for being effective, creative and goal-oriented, which we believe are the key competences for success.  We look forward to joining forces with ReneSola Power to pursue other project opportunities in Hungary and any other countries in the future."

About ReneSola Power

ReneSola Power (NYSE: SOL) is a leading global solar project developer and operator. The Company focuses on solar power project development, construction management and project financing services. With local professional teams in more than 10 countries around the world, the business is spread across a number of regions where the solar power project markets are growing rapidly, and can sustain that growth due to improved clarity around government policies. The Company's strategy is to pursue high-margin project development opportunities in these profitable and growing markets; specifically, in the U.S. and Europe, where the Company has a market-leading position in several geographies, including Poland, Hungary, Minnesota and New York.

About OBTON

Obton is an investment and development company that targets land and rooftop owners, developers and financial institutions with the goal of building a broad and risk-diverse portfolio of assets in the field of renewable energy. Our expertise includes development, funding and management of solar PV projects - primarily projects starting from EUR 10m for stable markets in Europe and North America.

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SOURCE ReneSola Ltd.

FAQ

What projects did ReneSola Power sell in Hungary?

ReneSola Power sold a portfolio of 20 solar projects with a combined capacity of 12.3 MW.

What is the significance of the KAT feed-in tariff for ReneSola's projects?

The projects are qualified under Hungary's 25-year KAT feed-in tariff scheme, ensuring stable revenue.

How does this transaction affect ReneSola's position in the solar market?

This sale enhances ReneSola's market position in Hungary, contributing to their growth strategy in Europe.

When was the agreement for the sale of projects in Hungary announced?

The sale agreement was announced on January 8, 2021.

Who is the partner company involved in the sale of the solar projects?

The partner company is Obton, an international solar investment company.