Emeren Group Signs 7-Year PPA for 15 MWp Solar Farm in Poland

Rhea-AI Summary

Emeren Group (NYSE: SOL) has signed a 7-year Power Purchase Agreement (PPA) for a 15 MWp solar farm in Poland's Silesia region. The project will supply clean energy to a Polish subsidiary of a multinational consumer goods business under a pay-as-produced agreement.

The solar farm will generate approximately 14,958 MWh of renewable energy annually, reducing carbon dioxide emissions by about 16,150 metric tons per year. The project created 80 construction jobs and will maintain 10 long-term positions. It will generate annual revenues of 90,000 PLN in property taxes and 167,000 PLN in land taxes for local development.

Positive

• Secured 7-year PPA with multinational consumer goods company
• Project generates 14,958 MWh of renewable energy annually
• Creates 10 permanent jobs and generates recurring tax revenue

Negative

• None.

Insights

Energy Market Analyst

The 7-year PPA for a 15 MWp solar farm represents a modest but strategically positioned project in Poland's evolving energy landscape. While the annual generation of <money>14,958 MWh</money> is relatively small-scale, the partnership with a multinational consumer goods business provides stable revenue visibility through 2031. The project's location in Silesia - Poland's industrial heartland - is particularly notable as the region undergoes energy transition away from coal.

The local tax contributions of <money>257,000 PLN</money> annually (<money>~$64,250</money>) and creation of 10 permanent jobs, while modest, help establish community goodwill - critical for future project development in the region. However, for Emeren Group with a market cap of <money>$103M</money>, this single project is unlikely to materially impact near-term financials given its size.

ESG Investment Analyst

This PPA demonstrates Emeren's execution capabilities in the European renewable energy market, particularly noteworthy given Poland's challenging transition from coal dependency. The <percent>16,150</percent> metric tons of annual CO2 emissions reduction enhances the company's environmental credentials, though the impact is relatively modest in scale.

The project's social impact metrics are well-defined, including job creation for Ukrainian workers amid regional geopolitical challenges. However, for institutional ESG investors, the project's scale may be insufficient to significantly influence investment theses, especially given SOL's micro-cap status. The guaranteed revenue stream from a multinational counterparty does provide some governance comfort, though more details on the PPA pricing structure would be needed for comprehensive ESG evaluation.

NORWALK, Conn., Dec. 30, 2024 /PRNewswire/ -- Emeren Group Ltd ("Emeren" or the "Company") (www.emeren.com) (NYSE: SOL), a leading global solar project developer, owner, and operator, today announced the signing of a 7-year Power Purchase Agreement (PPA). The solar farm, located in Poland's southwest Silesia region, will supply clean energy under a pay-as-produced agreement to the Polish subsidiary of a multinational consumer goods business.

The solar farm will generate approximately 14,958 MWh of renewable energy annually, mitigating around 16,150 metric tons of carbon dioxide emissions each year. This achievement aligns with Poland's national climate goals and global decarbonization efforts. Additionally, by supplying clean energy directly to the grid, the project enhances local energy security and supports the diversification of Poland's energy mix, which remains heavily reliant on coal.

The project also delivers significant economic benefits to the region. Construction provided employment for 80 workers, including many from the Ukrainian community, and its ongoing operations will create 10 long-term jobs. Moreover, the solar farm will generate approximately 90,000 PLN annually in property taxes and 167,000 PLN in land taxes, supporting local infrastructure improvements and community development initiatives.

Yumin Liu, CEO of Emeren Group, commented, "The successful signing of a 7-year PPA demonstrates our ability to execute on critical aspects of our renewable energy strategy in key markets. These achievements reflect our commitment to delivering projects that drive environmental progress and create lasting value for communities. This project not only supports Poland's energy transition but also strengthens the local economy and showcases our ability to deliver impactful renewable energy projects on a global scale. By partnering with strong industrial leaders and trusted buyers, we continue to advance our vision of a sustainable energy future."

About Emeren Group Ltd

Emeren Group Ltd (NYSE: SOL), a renewable energy leader, showcases a comprehensive portfolio of solar projects and Independent Power Producer (IPP) assets, complemented by a significant global Battery Energy Storage System (BESS) capacity. Specializing in the entire solar project lifecycle — from development through construction to financing — we excel by leveraging local talent in each market, ensuring our sustainable energy solutions are at the forefront of efficiency and impact. Our commitment to enhancing solar power and energy storage underlines our dedication to innovation, excellence, and environmental responsibility. For more information, go to www.emeren.com.

For investor and media inquiries, please contact:

Emeren Group Ltd - Investor Relations
+1 (925) 425-7335
ir@emeren.com 

The Blueshirt Group 
Gary Dvorchak
+1 (323) 240-5796
gary@blueshirtgroup.co

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SOURCE Emeren Group Ltd

FAQ

What is the capacity of Emeren Group's (SOL) new solar farm in Poland?

Emeren Group's new solar farm in Poland has a capacity of 15 MWp.

How much renewable energy will SOL's Polish solar farm generate annually?

The solar farm will generate approximately 14,958 MWh of renewable energy annually.

What are the environmental benefits of SOL's new Polish solar project?

The project will mitigate around 16,150 metric tons of carbon dioxide emissions annually.

How many jobs will SOL's Polish solar farm create?

The project created 80 construction jobs and will maintain 10 long-term operational positions.

What is the duration of the PPA signed by Emeren Group (SOL) for the Polish solar farm?

Emeren Group signed a 7-year Power Purchase Agreement (PPA) for the solar farm.