ReneSola Wins Bid To Build 42 MW Solar Projects In Poland

ReneSola Ltd. (NYSE:SOL) announced that it has received a contract to build 42 solar projects in Poland of 1 megawatt (MW) each. These fresh contracts were awarded to ReneSola by the Energy Regulation Office in Poland, which held solar power auction on Jun 29, 2017. In the auction, 352 new solar projects were selected and found eligible to receive subsidies.

ReneSola is expected to connect the solar projects to the utility grid by the second and third quarter of 2018. These green energy projects will have a 15-year guaranteed tariff of PLN 385-392/MWh or $103.67-$105.56/MWh.

ReneSola is no stranger to the solar power auction in Poland. Last year, the solar project developer and high quality solar product supplier grabbed a contract from Poland’s inaugural auction to build 13 solar projects of 1MW each in Southern Poland. (read: ReneSola Wins Bid for 13 MW of Solar Projects in Poland)

Long Term Plans

ReneSola supplies high quality solar modules to many countries across the globe. In addition, it is also developing an entire solar project and selling the same to the end users. As of Jun 2, 2017, the company had a pipeline of over 1.4 GW of projects in various stages of production.

Last week, the company received a contract from Thailand to build a 5MW agricultural project having a 25-year power purchase agreement.

ReneSola aims to construct 550 MW Solar Projects in 2017 and explore new markets. Solar projects in Poland could open up new opportunities for the company to clinch deals in other countries of Europe as well as emerging markets.

In addition, the company connected 180 MW of solar rooftop projects in China during the first half of 2017 and aims to add over 300 MW in the region this year.

Future of Solar Energy

Per a report from GTM Research, the global solar market will hit 85 gigawatts (GW) in 2017, nearly doubling the installed capacity of 2014. Asian countries like China, India and Japan have laid out plans to harness solar energy to generate electricity in larger volumes in the years to come.

India aims to add 100 GW of solar power in generation capacity by 2022. The solar market in the region creates an excellent export opportunity for Chinese module producers like ReneSola, JA Solar Holdings (NASDAQ:JASO) , JinkoSolar Holding Co., Ltd. (NYSE:JKS) and Yingli Green Energy Holding Company Limited (NYSE:YGE) , among others.

Price Movement

Shares of ReneSola have lost 60.4% in last 12 months compared with the Zacks categorized Solar industry’s loss of 16.5%.

Throughout last year, the solar industry has been grappling with challenges like declining solar panel prices, weaker power plant contracting activity and increasing regulatory pressure has hurt the overall performance of the solar industry operators.

Zacks Rank

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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