ReneSola, the solar company listed in London and formally registered in the British Virgin Islands, was awarded a deal to develop a $700mln power station, which is located in northern China and is to become operational next year.
Group’s shares surged 19% after the letter of intent from the Taiyangshan Development Zone to construct a 150MW plant near the city of Wuzhong. This allows ReneSola to move from being a manufacturer of solar wafers, cells and modules into a full-blown scheme developer. The current surge in price of ReneSola’s shares is good sign following a fall in November 2008 ahead of a global crash in the price of solar wafers as subsidies were cut back and credit for new projects dried up.
According to European analysts, manufacturers are trying to compete in future with Asian competitors, and Chinese companies have a 30% cost advantage over European firms. ReneSola, the company based in BVI but with all its manufacturing operations in China, is estimated as an attractive investment.
Recently, in May 2009, ReneSola announced the acquisition of a rival manufacturer JC Solar, for RMB 118 mln. The BVI company has been ramping up its annual polysilicon production capacity, which is expected to reach 2,900 tonnes by the end of next year, compared to 400 to 500 tonnes over the current year.
Also, the BVI-registered company reported pre-tax loss in the amount of $2.9mln in the second quarter of the year, compared to a deficit of $62.8mln in the first quarter; at the same time, most other solar module makers reported the expected rise of losses.