SolTech’s subsidiary in China, ASRE, signs a cooperation agreement contract in ShanXi Province*

 

A new five-year cooperation agreement has been signed with a local government in China. This time it’s with the local regime in JinCheng, nested in the southeast corner of ShanXi Province – one of the sunniest regions in the whole of China. The contract covers the installation of 50 MW solar energy capacity, of which 5 MW are planned to be completed during 2016. YangTai Group Co. Ltd, the partner in this contract, is tasked with the mission of carrying out energy improving measures on the building properties owned by JinCheng’s local government.

Fully satisfied (i.e. 50 MW of solar energy capacity fully installed), the contract is estimated to generate an annual income of approximately 85 MSEK ($i0,000,000 US)**.  Up and running, the planned installation of 5 MW to be completed during 2016 is estimated to provide an annual income of approximately 8.5 MSEK ($1,000,000 US). 

By way of comparison, it can noted that according to Svensk Solenergi (Solar Energy Assn. of Sweden), the three largest solar cell-user kommunes (roughly: county districts) in Sweden, i.e. Linköping, Västerås and Stockholm, have installed a combined solar cell capacity of circa 6.6 MW during 2015, and further: Sweden’s total installed solar cell capacity, measured in terms of electrical effect, is 48.6 MW.

CEO Frederic Telander comments:

  •  “The new signing of a basic (cooperation-agreement) contract reaffirms and strengthens interest in the business-model we employ. Thus far this year, ASRE has contracted orders mounting to 8.68 – 10.68 MW, as well as having undersigned basic two-party cooperation agreement contracts mounting to 150 MW, all told. We appear to have irrefutably launched ourselves into this market at the right point in time.”

For more information, please contact:
Frederic Telander, CEO SolTech Energy Tel; 08-441 88 46.
email: frederic.telander@soltechenergy.com

*    Not to be confused with the Province of Shaanxi.
**  Based on an exchange rate of 8.5 SEK/US Dollar.

SolTech Energy in brief
SolTech Energy develops and sells a solar energy system based on research carried out over several years at Kungliga Tekniska Högskolan (KTH- Royal Institute of Technology). The system is a part of a building’s outer shell; specifically, roofs and/or walls formed of glass (panels or glass plates) that function as both weather protection and sun-catchers for the production of heat, hot water and electricity. The assortment of suitable glass also includes unique thin-film solar cells in black and/or semi-transparent glass – or as isolated glass modules in various sizes and formats that allow for esthetic integration with a building’s outer shell.

SolTech Energy Sweden AB has approximately 5,600 shareholders and its shares are traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. The wholly owned subsidiary Wasa Rör T Mickelsson AB is also included in the parent concern. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see:www.soltechenergy.se.

Business operations in China
SolTech’s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd (ASRE), where SolTech is the (51%) majority owner and Advanced Solar Power Hangzhou Inc. the (49%) minority owner. The business model consists of having said jointly owned company, ASRE, responsible for the installation, ownership, and periodic maintenance of solar energy installations mounted on the roofs of customer-owned facilities. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term contract to buy all the electricity and/or thermal heat the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, in combination with various forms of subsidies per produced kWh. The strategy is to build a backlog of orders for 2016 and beyond, with the goal of obtaining by the year 2019 an installed and operational capacity of approximately 230 MW, corresponding to a continuous yearly sales figure of approximately 400 MSEK ($47,000,000 US).

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