JinkoSolar to divest stake in 1.2GW Sweihan Power Station in Abu Dhabi

JinkoSolar has struck a deal to sell its stake in the Sweihan Power Station, a 1.2GW solar power plant in Abu Dhabi, to Jinko HK, an indirectly wholly-owned subsidiary of Jinko Power Technology (JinkoPower).

The financial terms of the deal were not disclosed.

The Sweihan Power Station, which was built with an investment of $871.2 million, was commissioned in July 2019.

JinkoSolar is executing the deal through its wholly-owned subsidiary JinkoSolar Sweihan (HK). The subsidiary of the Chinese solar module manufacturer has a 50% stake in Sweihan Solar Holding Company.

The Sweihan Power Station is operated by Sweihan PV Power in which Sweihan Solar Holding has a 40% stake.

Following the closing of the deal, Jinko HK will indirectly have a 20% stake in Sweihan PV Power.

The transaction is subject to approvals from Emirates Water and Electricity Company (EWEC), other shareholders of Sweihan Holding and the project company, and also the project finance lenders.

All the power generated from the Sweihan Power Station for an initial period of 25 years will be sold to EWEC under a contract.

Kangping Chen – CEO of JinkoSolar said: “We are glad to have reached this agreement with JinkoPower. This divestiture will help JinkoSolar focus on its core business, enhance our strength and further sustain our long term growth in the global PV industry.”