ASRE, SolTech Energy’s subsidiary in China, has signed an order with the battery firm, Shangyu Aolong Electrical Source Co. Ltd. The order calls for the installation of a 2 MW (megawatt) solar energy unit, estimated to provide annual earnings equivalent to approximately 3.44 MSEK (0.35 MEUR). Over the contract’s 25-year lifespan, cumulative income is estimated to mount to approximately 86 MSEK (8.7 MEUR). With the inclusion of this order, ASRE has thus far during 2016 signed orders mounting to 28.9 – 32.9 MW. Inasmuch as this year’s goal of 25 MW has been met, our focus is now set on 2017’s goal, namely: 50 MW in sold solar energy installations.
The installation is estimated to produce circa 2,000,000 kWh annually. Based in ASRE’s home-city, Hangzhou, Shangyu Aolong Electrical Source Co. Ltd is contractually committed to buying all the electricity the system produces over the course of 25 years. Investment in the installation, which continues to be owned by ASRE, amounts to approximately 19.84 MSEK (2 MEUR). Its completion is expected to take place during the second quarter of 2017.
CEO Frederic Telander comments:
- We have met and exceeded 2016’s goal before the year’s close, and our focus is now set on achieving 2017’s goal of 50 MW. Assuming that the 2016 and 2017 goals, of selling and putting into operation installations generating 25 and 50 MW respectively, are met, we will reach an annual sales figure for ASRE equivalent to circa 130 MSEK with a good profit margin. Our overall goal of obtaining by the close of 2019 an installed capacity equivalent to 230 MW, set into full operation and generating annual sales equivalent to approximately 400 MSEK, remains in force.
For more information, please contact: Frederic Telander, CEO SolTech Energy Tel: 08-441 88 46. Email: firstname.lastname@example.org
The information contained in this press release meets with the information SolTech Energy Sweden AB (publ) is required to make public according to 1.) law (1991:980) concerning trading with financial instruments, 2.) law (2007:528), concerning the financial instrument market, and/or 3.) the EU’s decree concerning market abuse. Said contained information was provided by the above-cited contact person for publication on December 8, 2016 at 07:00 CEST.
SolTech Enery 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 promote integration with a building’s outer shell.
SolTech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. Included in the concern are its jointly owned (51%) subsidiaries Advanced SolTech Sweden AB (publ.) ASAB, and Advanced SolTech Renewable Energy, Hangzhou Inc. (ASRE), as well as its wholly owned subsidiary Wasa Rör T Mickelsson AB. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.com
Investment 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 majority (51%) owner and Advanced Solar Power Hangzhou Inc. (ASP) the minority (49%) 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, 20-25 year 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 capacity of approximately 230 MW in full operation, generating current annual sales amounting to approximately 400 MSEK (40.1 MEUR).