On March 9, Jiangsu Linyang Energy Co., Ltd. issued an announcement on signing the cooperation framework agreement on photovoltaic projects. Linyang Energy Co., Ltd. will set up a joint venture with China Huaneng Group Co., LTD. ‘s branch company in Jiangsu with the shareholding and proportion of investment of 9:1, to develop large ground-mounted photovoltaic power stations in Huaneng Group’s key areas, the statement said.
Both parties plan to develop no less than 500MW of photovoltaic power station annually and no less than 1.5 GW accumulatively from 2020 to 2022, and China Huaneng Group Co., LTD. ‘s branch company in Jiangsu agrees to give priority to party B to be responsible for the operation and maintenance of the invested project on the basis of legal compliance and guaranteed power generation.
Meanwhile, after due diligence and other procedures, China Huaneng Group Co., LTD. ‘s branch company in Jiangsu will acquire 100% of the equity of Linyang Energy-related project company according to the ratio of 7:3 for the 300MW photovoltaic power station held by Linyang Energy. Linyang Energy promises that the power generation of the target power station meets the agreed standards of both parties. If the power generation fails to meet the standards, Linyang Energy will assume the power compensation responsibility.