SOLAR INVESTMENTS - FROM FUNDINGS TO PARTNERSHIPS & ACQUISITIONS: WEEK 46
SolarEdge raises $40 million with 45X US Tax Credits sale; Zhongli Group faces delisting risk; Nestlé signs solar PPA in Thailand. All these and more in our TaiyangNews - All About Solar Weekly Solar PV Investment Updates.
This is a weekly newsletter to keep you updated on the latest developments in solar investments, including mergers and acquisitions, joint ventures, and public offerings within the solar industry. These are select stories that have been published on our website. Subscribe to weekly updates for the top stories from TaiyangNews. Visit https://taiyangnews.info/ for all the news on solar.
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?FUNDINGS
$100 million for Genneia: Argentinian renewable energy company Genneia has signed a 10-year term loan worth $100 million to help build 2 solar PV projects with 270 MW combined capacity. The syndicated loan has contributions from the FMO, FinDev Canada and Proparco, the respective financial institutions of the Netherlands, Canada and France. It will deploy the proceeds to build the PV projects in the municipalities of Malargüe and Luján de Cuyo, in the province of Mendoza. Both will supply green electricity to the Renewable Energy Term Market (MATER) for companies to help them meet their sustainability goals.???
Yuexiu Capital establishes RMB 2 billion residential solar fund: Publicly listed financial control platform Yuexiu Capital has established the Yuexiu Guanghui Fund. Jointly funded by Dajia Asset Management, Pushin Property Investment, and Yuexiu Industry Investment, this fund is managed by Yuexiu Industrial Fund. It is called the first in the sector backed by large insurance capital and other industry players, with residential solar as the underlying asset. With a total scale of RMB 2 billion ($281.43 million), the fund will focus on investing in high-quality assets in the residential solar and other renewable energy sectors.
Yongfu Power co-founds distributed solar fund: Yongfu Power, a Chinese power and energy service provider, recently signed an agreement with multiple investment institutions, including Fujian State-Owned Capital Investment Fund Management Co., Ltd., to establish the Fuzhou High-Tech Zone Green Equity Investment Partnership. The fund has a total committed capital of RMB 250 million ($35.18 million), with Yongfu Power contributing RMB 37.5 million ($5.28 million) as a limited partner, representing 15% of the total capital. This fund will primarily focus on the distributed solar industry, with planned investments in residential and commercial solar projects.
ZE Energy raises €54 million: French renewable energy producer with battery energy storage systems (BESS) ZE Energy has raised €54 million in a capital raise round led by Amundi Energy Transition. ZE Energy’s existing shareholder Sorégies has invested in the company again alongside other investors namely Marguerite, HTGF and ZE WAY INVEST. Amundi said the capital raise includes 2 new investors – Amundi managed Infrastructure FundsCore+, and The Climate Infrastructure Fund managed by Demeter. ZE Energy currently holds over a 1 GW project portfolio of solar PV and more than 400 MW of battery capacity. It will use the proceeds for its growth over the next 2 years, and expand in Europe. It aims to exceed 900 MW of PV and 600 MWh of storage in the operational and ready-to-build project portfolio by the end of 2026. ?
Voltalia raises bank loan: France’s Voltalia has successfully increased the bank loan of €294 million it signed in July 2024, to now €324 million after a successful syndication. The syndication allowed Itau Bank, from Brazil, and the Standard Bank, from South Africa, to join the initial pool of 9 banks from Europe, the USA and Japan, it shared. This loan will contribute to the funding of future investments in renewable energy assets, and improve its financial flexibility, according to the management.
Azure Power raises INR 24 billion: Azure Power Global Limited has successfully raised INR 24 billion ($286 million) in a refinancing transaction. The loan was structured as an INR term loan, underwritten by the government-owned REC Limited. With this, it says the company has successfully prepaid its Green Bonds, originally issued in 2019 for $350 million, and backed by 10 solar projects commissioned between 2016 and 2019. These bonds were set to mature in December 2024. ??
Solar financing for MSEs: Tata Power Renewable Energy Limited (TPREL) has entered a strategic partnership with IndusInd Bank Limited to facilitate affordable solar financing for micro and small enterprises (MSE). They plan to provide the MSEs with collateral-free financing, offering loans ranging from INR 1 million to INR 20 million. These loans will require a 20% margin and will come with competitive interest rates with up to 7-year terms. They plan to accentuate the focus on providing customized financial solutions for rooftop solar installations for small businesses.???
SolarEdge raises $40 million with 45X US Tax Credits sale: Israel-headquartered global solar PV inverter supplier SolarEdge Technologies has closed its maiden transaction for the sale of 45X Advanced Manufacturing Tax Credits, which it says were generated by the sale of eligible, US-made inverters in H1 2024.?The total value of these credits is around $40 million, according to the company. It produced these solar inverters at the company’s factory located in Austin, Texas. For the complete story, click here.?
Government backs 1.5 GW solar module production factory in Romania: The Romanian Ministry of Energy has approved state aid of €32.92 million ($35.4 million) under the National Recovery and Resilience Plan (PNRR) for a solar panel manufacturing factory with an annual capacity of 1.5 GW. This factory will be built by a company called SC Heliomit SRL in Barlad, Vaslui county of Romania, according to the ministry that signed this investment contract on November 4, 2024.?
REFINANCING
Refinancing for European Energy: Denmark-based renewable energy company European Energy says it has successfully refinanced and upsized its €292.5 million green senior bonds and €100 million green revolving credit facility (RCF) into a new €375 million green bond and €100 million green revolving credit facility. Both the green senior bond and RCF are part of the company’s new Green Finance Framework. The company stated, “The bond is one of the largest Nordic high-yield bonds to be issued on NASDAQ Nordic. With this refinancing, European Energy has secured a robust financial position to support its growth strategy going forward.” ?
STOCK ISSUANCE & IPO
GCL SI’s stock issuance application approved: Solar PV cell and module manufacturer GCL SI’s stock issuance application has been approved by the China Securities Regulatory Commission. This approval is valid for 12 months from the date of registration. According to GCL SI’s stock issuance plan released in August, the company intends to raise up to RMB 4.842 billion ($681.18 million) from no more than 35 selected investors. The funds will be used for the second 10 GW phase of a 20 GW high-efficiency solar cell project in Wuhu City, Anhui Province, and to supplement working capital. The project will utilize TOPCon cell technology and is expected to be completed within 12 months. Late September, together with Kunshan City and the Wujiang District government, GCL jointly initiated the establishment of a RMB 13 billion ($1.85 billion) industry fund to promote the development of the perovskite industry (see China Solar PV News Snippets).
ACME Solar launches IPO: Indian renewable energy company ACME Solar launched its initial public offering (IPO) on November 6, 2024 to raise INR 29 billion ($345 million) in proceeds. The company set a price band of INR 275 to INR 289 ($3.26 to $3.43)/equity share with a face value of INR 2.00 ($0.023)/share. It aimed to raise INR 23.95 billion ($284 million) by offering a fresh issue, and an additional INR 5.05 billion ($60 million) by offering shares from its subsidiary ACME Cleantech Solutions. According to local media reports, it raised INR 13.01 billion ($154 million) through a pre-IPO placement on November 5, 2024 through anchor investors. Retail individual investors (RII) subscribed to over 2 times the allocated shares, followed by the non-institutional investors subscribing 62% and qualified institutional buyers (QIB) subscribing 31% of the quota. The IPO will close on November 8, 2024 and allotment results are expected by November 11, 2024. The company is likely to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 13, 2024. ACME Solar’s total operational capacity as of October 29, 2024 was 1.34 GW, with another 3.25 GW under construction contracted and 1.73 GW under construction awarded capacity. It plans to invest the IPO proceeds in its subsidiaries for repayment or pre-payment in full or part of the outstanding borrowings and for general corporate purposes.
CONVERTIBLE BONDS
Clenergy issues convertible bond prospectus: Solar mounting systems and trackers manufacturer Clenergy has released a prospectus for the issuance of convertible bonds as part of its listing process. According to the prospectus, the company reported revenues of RMB 1.44 billion ($202.69 million) in 2022, RMB 1.94 billion ($272.50 million) in 2023, and RMB 873.58 million ($122.91 million) in the first half of 2024, with net profits of RMB 109.30 million ($15.38 million), RMB 168.78 million ($23.75 million), and RMB 54.34 million ($7.65 million), respectively. Clenergy aims to raise up to RMB 500 million ($70.34 million) to build a 10 GW distributed solar mounting system smart factory and an energy R&D center.
DELISTING
Zhongli Group faces delisting risk: Zhongli Group, the parent company of Talesun Solar, has stated in an announcement that it must recover RMB 1.805 billion ($254.86 million) in non-operating funds by November 10, 2024. If not, it faces the risk of suspension and delisting. As of the announcement date, the company expects it will be difficult to complete the recovery within the remediation period and may face suspension from November 11, with the suspension period not exceeding 2 months. Furthermore, whether the company's restructuring plan can be successfully implemented by the end of 2024 remains uncertain. If the plan is not completed on time, it may trigger the relevant delisting regulations. According to its recently released Q3 2024 report, Zhongli Group achieved a revenue of RMB 2.477 billion ($350.77 million) in the first 3 quarters of 2024, a year-on-year decrease of 28.88%. The net profit attributable to shareholders, excluding non-recurring gains and losses, was a loss of RMB 458 million ($64.55 million). Earlier this year, Talesun signed an MoU with Turkey's MEM Solar to collaborate on a 1.5 GW solar module facility over 3 years (see China Solar PV News Snippets).
PARTNERSHIPS
Partnership for floating solar in Malaysia: Abu Dhabi’s Masdar has signed a joint study agreement with Malaysia’s Sarawak Energy and clean energy solutions provider Gentari to explore a floating solar power plant in Malaysia. The trio plans to assess the feasibility of such a project at the reservoir of Murum Hydroelectric Plant in Sarawak state. If implemented, it would be a ‘pioneering model’ for floating solar projects across the region. Masdar said this deal follows its agreement with the Malaysian Investment Development Authority in 2023 for 10 GW of clean energy development in the Asian nation.??
Floating solar plant in Colombia: A 2.8 MW floating solar power plant is set to come up in Colombia as the country’s ‘largest’ such project. It will also be one of South America’s largest floating solar farms, according to Enexa, the energy services company. It has joined hands with Parque Central Zona Franca to build the facility. The Yurbaqua Floating Solar Plant is planned to be located on 18,000 m2 of an artificial water reservoir in the industrial zone located in Turbaco, Bolívar. On completion, it is estimated to generate around 4.6 GWh/year. Both companies see the project as contributing to the country’s energy supply as its hydroelectricity supply faces challenges.?
JinkoSolar’s Manchester project: Chinese solar PV manufacturer JinkoSolar is installing more than 10,500 of its Tiger Neo solar modules at the Manchester City Football Academy as part of its multi-year global partnership with the Manchester City Football Club announced in June 2024 (see Europe Solar PV News Snippets). This will enable the club to produce enough renewable energy to offset its annual power requirements. Installation of the solar panels will be completed in 2 phases. Under phase I, solar panels will be deployed on the rooftops of various buildings within the academy which should be completed by 2024-end. Under phase II, JinkoSolar will install thousands of ground-mounted panels throughout the training facility. This work is scheduled to be completed before the conclusion of the 2024/25 season. JinkoSolar said this project will see the club become one of the largest producers of renewable energy in the world of football. JinkoSolar’s Vice President Dany Qian said, “This project will support Man City's 2030 Net Zero goal and represents a major step in Jinko's mission to optimize energy portfolio and drive the energy transformation globally.”???
AIKO & ACAP partner: Chinese solar PV manufacturer AIKO Solar has entered into a partnership with the Australian Centre for Advanced Photovoltaics (ACAP) as they target exceeding 30% efficiency in interdigitated back contact (IBC) silicon solar cells. The $4 million research and development (R&D) initiative will use advanced photon multiplication (PM) technology and generate multiple electron-hole pairs from high-energy photons. They do not plan to use any tandem structures in this pursuit. Recently, AIKO announced achieving 24.6% solar module efficiency for its all back contact (ABC) Comet 2U modules (see AIKO Announces 24.6% Commercial Solar Module Efficiency).?For ACAP, this initiative is part of its Industry Consortium that brings together academia and industry. Its design allows for the smooth integration of the research work into existing solar manufacturing processes. ACAP is funded by the Australian Renewable Energy Agency (ARENA) to support the latter’s goal to achieve $0.30/W total solar cost by 2030 and achieve 30% solar cell efficiency, dubbed as the 30 30 30 goal (see ARENA’s $45 Million For $0.30/W Solar Cost).??
Tongwei in Australia: Chinese solar PV manufacturer Tongwei has signed a strategic distribution agreement with Blue Sun Group in Australia at the recent All-Energy Australia 2024 event. Under the agreement, Tongwei will supply 1 GW of its high-efficiency solar modules to Blue Sun over the next 5 years. This is not the 1st cooperation between the 2 companies as they have been collaborating since October 2022. In September 2024, Tongwei signed a cooperation agreement with Blue Sun for its TNC-G12R series products.?
PPAs
50 GWh solar PPA in Malaysia: Global semiconductor company for electronic applications STMicroelectronics has entered a 21-year power purchase agreement (PPA) for close to 50 GWh/year of renewable energy supply in Malaysia. Under the contract, BKH Solar Sdn Bhd will facilitate the supply from a 30 MW new solar farm in Bukit Kayu Hitam, Kedah, Malaysia. Due to come into force in 2025, this agreement is undertaken under the Corporate Green Power Program introduced by the Malaysian Single Buyer in 2023, it added. BKH is a joint venture between Engie Renewable SEA Pte Ltd and Conextone Energy Sdn Bhd. It will provide a significant amount of renewable energy for ST’s operations in its high-volume test and assembly site in Muar, Johor, Malaysia, said the company’s EVP and Chief Procurement Officer Geoff West. For STMicroelectronics, this is its maiden PPA in Malaysia that advances its plans to become carbon neutral in its operations by 2027, including sourcing 100% renewable energy by 2027.
Tata Power to energize Noida Airport: The upcoming Noida International Airport (NIA) has secured renewable energy power supply under 2 power purchase agreements (PPA) signed with Tata Power. Tata Power Trading Company Ltd (TPTCL) will supply 10.8 MW of wind power to the NIA with secured assets from Tata Power Renewable Energy Ltd. (TPREL). The latter will also develop, operate and maintain a 13 MW on-site solar power project at the airport. Together, these installations will supply the airport with sustainable power for 25 years. Both these wind and solar projects will be built for an investment of INR 5.5 billion ($65.18 million). Tata Power said this partnership can develop a green model that can be replicated across India’s rapidly expanding airport infrastructure spanning the construction of 200+ new airports in the next 2 decades.?A 100% subsidiary of the Zurich Airport International AG, Yamuna International Airport Private Limited (YIAPL) is responsible for building the NIA.?
Renova’s 18 MW solar PPA: Renewable energy developer Renova, Inc. of Japan has signed a 20-year virtual power purchase agreement (PPA) for a 36 MW DC/18 MW AC solar power plant in Japan. The project operator is the company’s wholly-owned subsidiary Second Solar Power G.K. Power generated will be directly sold to ‘domestic consumer’ as non-feed-in-tariff (non-FIT), non-fossil certificates. These certificates will be derived from small-scale, distributed solar PV power plants and the generated electricity sold to the wholesale electricity markets.???
Nestlé signs solar PPA in Thailand: French renewable energy company GreenYellow has signed a solar PPA with global food and beverage group Nestlé in Thailand. Nestlé (Thai) Ltd. has contracted GreenYellow to install a 3.2 MW solar power plant at the Nestlé Waters manufacturing site in Ayutthaya province, enabling the factory to reduce its carbon emissions with the help of 4.5 GWh of clean energy produced by the solar project annually. Solar panels here will be installed on the ground and on parking canopies. GreenYellow says this will be the largest solar project among all Nestlé production sites in Thailand. Nestlé targets to use 100% renewable electricity across all its sites by 2025.??
SALE & ACQUISITION
Econergy’s 52 MW solar plant in Poland: Israel’s Econergy has sold a 49% equity stake in a 52 MW solar power plant in Poland to Phoenix Insurance. The latter has converted €4.2 million into a 49% stake in the project’s special purpose vehicle (SPV). The remaining loan will be converted into an unsecured shareholder loan, representing 49% of the total shareholder loans. The 52 MW Resko Project is Econergy’s 1st project in the country. To be built for around €41 million, it is scheduled to be connected by 2024-end.?
TAIYANGNEWS VIRTUAL CONFERENCE
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