Apollo Solar said that the non-binding LOI provides the company with an opportunity to become a shareholder in a future venture with the Ningguo City Investment Company that could demonstrate the cost-efficient use of solar energy on a community-wide scale.
In accordance with the LOI, Apollo will manage and operate the construction of Ningguo-Apollo solar energy community. Apollo will become a 51% shareholder of the JV, and Ningguo City Investment Company, Chengdu Zhongguang Photoelectric, and other investors will jointly own 49% of the shares of the venture. The solar energy community will likely cover an area between 30sqkm and 50sqkm.
The non-binding LOI contemplates the building, on a project- by-project basis, of a group of grid-connected solar power stations, economical lighting systems, and solar photovoltaic (PV) industrial parks to showcase a model community neighborhood using PV/thermal integrated buildings.
The parties anticipate the aggregate investment to be made by the JV in creating the community, including the building of a 10GW grid-connected solar power station, will be between $8.5bn-$14bn, and will take between 6-8 years to complete.
