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ReneSola (SOL) Wins 38 MW Solar Projects at Poland's Auction

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ReneSola Ltd (SOL - Free Report) won 38 solar utility projects at Poland's latest round of solar power auction held in the country’s Energy Regulation Office on Dec 3, 2020. The company’s average winning bid price was $70 per megawatt-hour (MWh) compared with the auction price range of $51 MWh-$73 MWh.

Each of the solar projects has 1 megawatt (MW) capacity and is eligible for a 15-year guaranteed tariff. These projects are under Poland’s Contract for Difference regime and are likely to be connected to the country's network in the next two couple of years.

Solar Power Prospects in Poland

Poland seems an emerging solar market with 74% of its electricity still being generated from coal. In the first seven months of 2020, the country deployed nearly 916 MW of new solar PV and achieved 2,261.3 MW of installed solar capacity at the end of July, per the release from Polish grid operator PolskieSieci Elektroenergetyczne. The research report from Instytut Energetyki Odnawialnej indicates that the country will install 2.5 Gigawatt (GW) of PV capacity by 2020 end compared with the installed PV capacity of 1.3 GW in 2019. The report also suggests that Poland may attain 7.8 GW of solar capacity by 2030.

On Dec 8, 2020, the company sold a 16-MW portfolio of solar parks in Poland to Modus Asset Management. The portfolio comprises 16 projects equipped with bifacial solar panels, which has been awarded a 15-year contract-for-difference support mechanism in Poland.

Notably, such projections and ReneSola’s strategic actions will boost the number of solar projects the company possesses, thereby enhancing its profitability. Also, these positives will enable it to expand its footprint in Poland over the next several years.

ReneSola’s Solar Power Prospects Across the Globe

Solar plants are installed in large scale across the globe. ReneSola is also making concerted efforts to expand its business in the domestic and overseas markets like Spain, Poland, Hungary, the UK, France and Germany. Also, this solar project developer is actively pursuing opportunities in the uncharted markets that include South Korea and India. Moreover, the company aims to deliver reliable and cost-competitive power to serve its customers efficiently.

The Ground-Mounted Projects in the UK, France, Germany and Spain are all under development and their sale is expected to take place in 2021 or 2022. In the United States, the company has seven projects with pipelines having a total capacity of 300 MW. All are currently under construction. Also, in Hungary, it has two portfolios with a total capacity of 40 MW. The sale of one is expected in 2020 while the other is likely to take place in 2021.

Peer Moves

The immense growth potential in the global solar market is prompting solar industry players to engage in strategic acquisitions and divestitures to reap benefits from the same. In December, Canadian Solar (CSIQ - Free Report) completed the sale of a Japan-based solar project Gunma Aramaki for $64 million while Sunrun (RUN - Free Report) acquired Vivint Solar, creating a company valuation of $22 billion, in October. Prior to this, in September, First Solar (FSLR - Free Report) sealed a deal with JP Energie Environment for supplying its series 6 solar modules, which will be installed in France’s Labarde solar power plant.

Zacks Rank & Price Performance

ReneSola currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ReneSola’s shares have skyrocketed 126% in the past month, outperforming the industry’s growth of 16.4%.

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