Sky Solar Holdings, Ltd. today announced that it entered into a 25-year Power Purchase Agreement (“PPA”) with two wholly-owned subsidiaries of Shenzhen Kaifa Technology Co., Ltd. (SHE:000021) (“Shenzhen Kaifa”), a Shenzhen-based electronics manufacturing service provider, to develop a 1.7 MW rooftop solar project in Suzhou, China. This will be Sky Solar’s first distributed generation project in China.
Pursuant to the PPA, Sky Solar China will be the independent power producer that develops, owns, and operates the project. Upon completion, Shenzhen Kaifa will purchase more than 85% of the electricity generated from the project, with the balance being sold to the State Grid. The project is anticipated to be completed before year-end.
Mr. Wen Qian, President of Sky Solar China, commented, “We are excited to announce our first rooftop solar distributed generation project in China. This is an attractive opportunity for us, because the PPA price is locked in for 25 years with a potential unlevered IRR in the low- to mid-teens.”
Dr. Hao Wu, Chairman of the Board of Directors of Sky Solar, commented, “This project demonstrates the attractiveness of the rooftop DG market in China. We are optimistic about our prospects in China for distributed generation, due to our successful track record of solar project development and operation on a global basis. We look forward to finding more attractive opportunities in China.”
