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SFCE 12/17
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SFCE Signs Agreement to Sell 100% Equity Interest in 9 Solar Projects to Chongqing Future Investment Co., Ltd. for RMB1.2 billion
Dec 17, 2015 | PR Newswire
Shunfeng International Clean Energy Limited ("SFCE" or the "company", HK stock code: 1165) today announced it has signed an agreement to sell 100% equity interest in a wholly-owned subsidiary that owns and operates 9 solar projects in China to Chongqing Future Investment Co. Ltd. for a cash consideration of approximately RMB 1.2 billion. -
Shunfeng of China to shed 180 MW of solar parks
Dec 17, 2015 | SeeNews Renewables
By Militsa Mancheva
China-based Shunfeng International Clean Energy Ltd, or SFCE, (HKG:1165) said Thursday it has agreed to sell the owner of nine solar parks with a combined capacity of 180 MW to a unit of Chongqing Guo Xin Investment Holding Co Ltd. -
MIP failings prove EU is being protectionist, says Chinese diplomat who negotiated solar deal
Dec 17, 2015 | PV - Tech
By John Parnell
The failure of the EU-China negotiated trade settlement to provide a workable environment for manufacturers demonstrates that the 'protectionist' nature of the European Commission’s policy, the head of the Chinese organisation that negotiated the solar deal has said. -
China Suspends Fuel Price Cuts to Curb Oil Concerns
Dec 16, 2015 | BNA Daily Environment Report
China suspended fuel price adjustments as the world's biggest energy consumer tries to curb demand growth and cut pollution to help improve air quality. -
China's State Power to buy renewables business of IFM Investors
Dec 16, 2015 | SeeNews Renewables
By Mariyana Yaneva
Australian fund manager IFM Investors has agreed to sell renewable energy unit Pacific Hydro Ltd to China's State Power Investment Corp. -
China’s State Power Investment buys Pacific Hydro
Dec 17, 2015 | Recharge
By Brian Publicover
China’s State Power Investment Corp. (SPIC) has agreed to acquire Melbourne-based renewables developer Pacific Hydro from Australian pension fund IFM Investors. -
US$1.2 million Chinese peer-to-peer solar investment scheme sells out
Dec 16, 2015 | PV-Tech
By Andy Colthorpe
A mainstream financial instrument in China by solar manufacturer HT-SAAE, selling “shares” in the company’s PV projects on a P2P trading platform, has sold out, just a few days after being made available. -
Solar & Wind Tax Credit Extensions Big Boost To Solar & Wind Growth
Dec 17, 2015 | CleanTechnica
By Joshua S Hill
The US Government has approved an additional five years for the Investment Tax Credit and Production Tax Credit, benefiting wind and solar developers. -
San Diego Sets Renewable Energy, Emissions Targets
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Dec 17, 2015 | PR Newswire
Shunfeng International Clean Energy Limited ("SFCE" or the "company", HK stock code: 1165) today announced it has signed an agreement to sell 100% equity interest in a wholly-owned subsidiary that owns and operates 9 solar projects in China to Chongqing Future Investment Co. Ltd. for a cash consideration of approximately RMB 1.2 billion.
According to the terms of the agreement, RMB650 million will be payable to SFCE within 3 days after the completion of the reorganization of the related subsidiaries, approximately RMB500 million will be payable by 30 June 2016, and the remainder will be payable within 3 years, subject to certain terms and conditions. The total consideration for the solar projects will be subject to the completion of an independent valuation.
"We are delighted to finalize this agreement and build a partnership with Chongqing Future Investment Co.," said Eric Luo, SFCE's CEO. "With the ongoing development and maturation of China's solar market, more and more companies and investors are entering the clean energy market. We are adapting to this trend and earlier this year we announced that we would transform our business to focus on delivering comprehensive solar solutions, including integrated EPC, development and operation and maintenance services, so that we could provide completed solar projects to investors as standardized fixed income products. This agreement with Chongqing Future Investment clearly demonstrates our progress towards this new business model."
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Shunfeng of China to shed 180 MW of solar parks
Dec 17, 2015 | SeeNews Renewables
By Militsa Mancheva
China-based Shunfeng International Clean Energy Ltd, or SFCE, (HKG:1165) said Thursday it has agreed to sell the owner of nine solar parks with a combined capacity of 180 MW to a unit of Chongqing Guo Xin Investment Holding Co Ltd.
“We are adapting to this trend and earlier this year we announced that we would transform our business to focus on delivering comprehensive solar solutions, including integrated EPC, development and operation and maintenance services, so that we could provide completed solar projects to investors as standardized fixed income products,” CEO Eric Luo explained.
Under the terms of the sale and purchase framework agreement, signed on December 16, SFCE will receive a cash consideration of approximately CNY 1.2 billion (USD 185m/EUR 170m) in three separate installments, subject to an independent valuation of the projects. Once the transaction concludes, Chongqing Future Investment Co Ltd will take full control of the target company -- Jiangsu Changshun Xinhe New Energy Co Ltd -- and thus the entire disposal group.
Shunfeng, the parent of Wuxi Suntech, is a fully-integrated solar company, which operates in both the upstream and downstream solar segments. So far, it has developed and constructed more than 1.6 GW of PV parks right across China, according to the statement.
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MIP failings prove EU is being protectionist, says Chinese diplomat who negotiated solar deal
Dec 17, 2015 | PV - Tech
By John Parnell
The failure of the EU-China negotiated trade settlement to provide a workable environment for manufacturers demonstrates that the 'protectionist' nature of the European Commission’s policy, the head of the Chinese organisation that negotiated the solar deal has said.
Speaking to PV Tech, Sun Guangbin, secretary general of the China Chamber of Commerce for Import and Export of Machinery of Electronic Products (CCCME), said the main problem with theprice undertaking is the level of the minimum import price (MIP). Sun has called for the trade measures to be removed.
Last week, Trina Solar said it was withdrawing from the undertaking and would instead serve the EU with products manufactured outside China.
“The main problem now remains that the MIP pricing is far more expensive than normal prices on the European market,” said Sun. “That has forced Chinese companies out of the everyday export business; meanwhile, the EU contrives to limit the possibility for Chinese companies setting up new factories in EU,” he claimed. “It is an upsetting decision to be made when Chinese companies have to drop out the agreement.”
The European Commission’s hands are somewhat tied however, with trade group EU ProSun lodging a request for an extension of the measures after meeting the required criteria. Political opposition to the measures is fragmented with the UK lobbying for their removal and Germany backing their continuation.
On Trina’s decision to withdraw, Sun said it was their prerogative as a business to do what is best for them. But the fact that businesses cannot operate commercially within the confines of the price undertaking proves that “the EU's policy reflects the unilateral trade protectionism” and hinders the ability of Chinese products to enter the European market.
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China Suspends Fuel Price Cuts to Curb Oil Concerns
Dec 16, 2015 | BNA Daily Environment Report
China suspended fuel price adjustments as the world's biggest energy consumer tries to curb demand growth and cut pollution to help improve air quality.
Shares of the country's biggest energy producers surged.
Keeping domestic fuel rates stable, while oil price continue to fall, can help curb petroleum consumption from “increasing too fast,” the National Development and Reform Commission, the country's top economic planner, said in a statement dated Dec. 15.
Automobile emissions are part of the reason for worsening air pollution, the NDRC said. Gasoline and diesel prices should have been cut by 200 yuan ($31) a metric ton on Dec. 15 based on its previous mechanism, according to ICIS China, a commodity researcher.
“It seems that the government won't cut prices until the pollution situation gets improved,” said Wei Wei, an analyst at Huaxi Securities Co. in Shanghai. “Otherwise more people will buy and consume cheaper fuel to add to pollution.”
Beijing issued its most severe smog warning last week for the first time, a so-called red pollution alert, limiting industrial production, banning outdoor construction and halting classes at primary schools and kindergartens. Shanghai, the financial capital, also had its worst smog in two years this week (236 DEN A-6, 12/9/15).
“With acute pollution across major cities in China, partly attributable to vehicle exhaust, the objective is to slow consumption growth,” Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co., wrote in a research report Dec. 16. “If crude prices continue to decline then refiners will continue to benefit through margin expansion as refined product prices are kept constant.”
Share Price Surge
China Petroleum & Chemical Corp., Asia's biggest refiner, rose as much as 11 percent to HK$4.83, the biggest intraday gain since October 2008. PetroChina Co., the country's second-largest refiner, gained as much as 6.9 percent to HK$5.40, the biggest advance in more than two months. Both companies earlier this week had fallen to their lowest levels in at least six years.
The suspension of oil product price adjustments may temporarily widen refining margins by $2 to $3 a barrel, and they may improve further if crude prices continue to fall, Beijing-based China International Capital Corp. said in an e-mailed report. Brent crude, a benchmark for most of the world's oil, has fallen about 14 percent this month.
China changed its system for setting gasoline and diesel prices in March 2013 to more closely track refiners’ crude costs. Fuel prices have been reviewed every 10 working days based on the average price of a basket of crudes, down from 22 days previously. The government will revise the current oil pricing mechanism and will seek public comment on the changes, the NDRC said in its statement.
The nation's gasoline demand exceeded expectations in the first 10 months of the year by increasing 10.4 percent from a year earlier, compared with weak diesel and fuel oil consumption, underscoring the country's shift away from heavy manufacturing, the Paris-based International Energy Agency said in its monthly Oil Market Report on Dec. 11.
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China's State Power to buy renewables business of IFM Investors
Dec 16, 2015 | SeeNews Renewables
By Mariyana Yaneva
Australian fund manager IFM Investors has agreed to sell renewable energy unit Pacific Hydro Ltd to China's State Power Investment Corp.
The deal, which is valued at more than AUD 3 billion (USD 2.2bn/EUR 1.98 bn) including debt, is expected to be completed in the first quarter of 2016.
An unnamed source familiar with the matters told Reuters the Chinese government investment body was chosen from a pool of 10 bidders because it was the only offer which involved buying the entire portfolio.
IFM put Pacific Hydro up for sale earlier this year after taking a AUD 685 million (USD 490m/EUR 450m) of write-downs on the business in 2014, because of the revision of the country’s renewable energy target (RET) scheme and lower demand for power.
Pacific Hydro manages 900 MW of generation capacity across 19 power plants in Australia, Chile and Brazil. It also has a significant pipeline of wind projects in Australia, which now stand a better chance of going ahead after a revised renewable energy target was finalised earlier this year.
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China’s State Power Investment buys Pacific Hydro
Dec 17, 2015 | Recharge
By Brian Publicover
China’s State Power Investment Corp. (SPIC) has agreed to acquire Melbourne-based renewables developer Pacific Hydro from Australian pension fund IFM Investors.Pacific Hydro has roughly 900MW of wind and hydropower capacity in various stages of development in Australia, Brazil and Chile.
It is believed that SPIC has agreed to pay more than AUD$3bn ($2.2bn), including debt, according to The Sydney Morning Herald.
It reportedly outbid Statkraft and New Zealand's Morrison & Co.
"The acquisition of Pacific Hydro will provide a high-quality national and international platform for the development of new energy investments," said SPIC chairman Wang Binghua.
Melbourne-based IFM Investors beat out Acciona to buy Pacific Hydro in 2005 for $725m.
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US$1.2 million Chinese peer-to-peer solar investment scheme sells out
Dec 16, 2015 | PV-Tech
By Andy Colthorpe
A mainstream financial instrument in China by solar manufacturer HT-SAAE, selling “shares” in the company’s PV projects on a P2P trading platform, has sold out, just a few days after being made available.
HT-SAAE – full name Shanghai Aerospace Automobile Electromechanical – was spun out of China’s official space programmes and is state-owned. The company makes a range of both n-type and p-type solar modules and recently launched bifacial modules, supplying internationally to markets including Europe and Japan as well as to projects in its homeland.
The financial product launched today is hosted on the Migang peer-to-peer (P2P) trading platform and guarantees individuals a 5% rate of return for investing in an HT-SAAE’s PV plant, a 1.98MW grid-connected project which self-consumes solar as well as selling surplus power to the grid. HT-SAAE's projects supplied to and developed include commercial and utility-scale facilities.
Unlike the typical lease or investment opportunities already available in China, which involve “buying” panels as PV projects are built, HT-SAAE’s Migang offering allowed investors to buy into the company’s already-constructed and connected projects.
Because the projects are already running, the company said it was able to guarantee 5% returns on investment based on past plant performance, while investors can also earn extra income on future performance. For instance, this morning (CET) a variable rate of 8% annual returns was displayed on the Migang site, with no upper limit to cap returns. HT-SAAE will pay investors their interest at six monthly intervals.
Only investors with registered ID in China could join the scheme, but aside from that the field was relatively unrestricted. P2P trading is hosted and conducted privately but is regulated by the government in China.
The full RMB7.92 million (US$1.2 million) available sold out on the first day of live trading, although customers could buy the shares in advance of launch for a few days beforehand.
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Solar & Wind Tax Credit Extensions Big Boost To Solar & Wind Growth
Dec 17, 2015 | CleanTechnica
By Joshua S Hill
The US Government has approved an additional five years for the Investment Tax Credit and Production Tax Credit, benefiting wind and solar developers.US Governments Returns Support to Wind and Solar
After many long months of deliberations and lobbying, the US Congress has approved a five-year extension to the hugely successful Investment Tax Credit, which has buoyed the country’s solar industry for several years. The US Congress also approved a five-year extension to the Production Tax Credit, which has similarly been a critical support for the country’s wind energy industry.
Both the Investment Tax Credit (ITC) and Production Tax Credit (PTC) were included in the omnibus appropriations bill (PDF), which was filed by the US House of Representatives Wednesday morning.
“Beyond any shadow of doubt, the US solar market has just been given the most lucrative and government backed seal of approval yet seen in the PV industry,” said Finlay Colville, head of Solar Intelligence at Solar Media, and one of the industry’s leading analysts.
“By extending the solar investment tax credit for five years with a commence construction provision and a gradual ramp down, bipartisan members in both Houses have reestablished America as the global leader in clean energy, which will boost our economy and create thousands of jobs across America,” said Rhone Resch, president and CEO of the Solar Energy Industries Association (SEIA).Saved from a “Cliff-Edge”
Analytics firm IHS proclaimed the extension as saving the US solar industry from a 2017 “cliff-edge,” repeating numbers the company had published a fortnight ago which showed the US solar industry would suffer a drop of 6.5 GW in 2017 from 2016 numbers if the ITC was not extended.
GTM Research predicts that the five-year extension to the solar ITC will result in 25 GW of additional solar capacity installed over the next five years, a 54% increase over a scenario in which the ITC was not extended. This would result in a 20 GW annual solar market in the US, and would foster $40 billion in incremental investment into the solar industry between 2016 and 2020.
“Currently there are 200,000 solar jobs, and the extension is likely to add another 140,000 jobs or more,” added Rhone Resch. “And with this extension, the solar industry can achieve its pledge of employing 50,000 veterans by 2020, a goal our industry takes very seriously. These jobs are stable, well-paying and cannot be exported overseas.”
Solar Stocks Skyrocket
Solar companies have also seen their stock values increase on news of the tax credit extensions — following existing increases in the wake of the successful Paris COP21 agreement.SunEdison saw its stock skyrocket 24% in trading on Wednesday to finish above $6 for the first time since early November, representing a 54% increase in stock price since close of trade last Friday. Canadian Solar stock jumped 7%, SolarCity stock jumped an impressive 34%, andTrina Solar saw its share price climb as well, but only 4.8% — though Trina Solar had already seen its share price jump significantly on the back of company news.
“A five-year extension of the ITC will lead to more than $125 billion in new, private sector investment in the US economy,” continued SEIA’s Resch. Going on:
“And much of this growth will come from small businesses, which make up more than 85 percent of America’s 8,000 solar companies. Over the last year, these companies told us they needed the extension of the ITC to provide their businesses with certainty, and SEIA has been working tirelessly to achieve that goal. Tonight, we’re happy to see that Congress has responded.
“Solar power in this nation will triple by 2022, hitting 95 gigawatts. That’s enough to power 19 million homes and represents 3.5 percent of U.S. electricity generation- up from 0.1 percent in 2010. And the extension will offset 100 million metric tons of CO2 annually- equivalent to the emissions from 26 coal fired power plants.”
Wind Stocks Jump
Several major wind energy players also saw their own stocks jump marginally on the back of the news. Vestas Wind Systems saw its stock price jump over 6% since Monday, and is well into an astonishing five-year stock price high. Spanish renewable energy companies Gamesa and EDP Renovaveis (the parent company of EDP Renewables North America) both saw their stocks tick upwards slightly as well.
“This agreement will enable wind energy to create more affordable, reliable and clean energy for America by providing multi-year predictability as we have called for,” said Tom Kiernan, CEO of the American Wind Energy Association. “The later years of this agreement will provide some challenges that the wind industry will work to overcome with our employees, partners and champions.”
“The U.S. is home to some of the most productive wind turbines in the world because of this successful policy,” Kiernan continued. “That’s due in large part to wind power champions in Congress, and leadership across both Republican and Democratic administrations.”
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San Diego Sets Renewable Energy, Emissions Targets
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