Linyang Energy signed an investment cooperation framework agreement with Huaneng Jiangsu, a wholly-owned subsidiary of China Huaneng

On September 27, Jiangsu Linyang Energy Co., Ltd. and Huaneng Jiangsu Energy Development Co., Ltd., a wholly-owned subsidiary of China Huaneng Group Co., Ltd., signed an investment cooperation framework agreement.

In line with the intention of complementary advantages and long-term cooperation, the two parties will take the market as the guide and jointly create good conditions and environment for cooperation. They will make full use of the resource advantages of all parties to expand investment and M&A cooperation in photovoltaic power generation and energy storage projects to achieve common development and mutual benefit. The main contents of the cooperation are as follows:

●Existing photovoltaic power generation project acquisition plan

Huaneng Jiangsu will conduct legal due diligence, financial audit and evaluation, investment decision-making and other procedures on the 600MW photovoltaic power station held by Linyang Energy. If the photovoltaic project meets the requirements, Huaneng Jiangsu will acquire 90% of the equity of the relevant project company to ensure that the project transfer capacity is no less than 267.23MW by the end of 2021.

●Incremental photovoltaic project development cooperation

The two parties will establish a joint venture platform company, which will develop large-scale photovoltaic power stations in key areas of Huaneng Jiangsu. From 2021 to 2023, a total of no less than 2 million kilowatts of photovoltaic power stations will be developed in Jiangsu Province (including but not limited to photovoltaic power stations developed in the entire counties of Sihong and Qidong) and Anhui Province. Under the same conditions and in compliance with laws and regulations, Linyang Energy or its affiliated companies will be given priority to be responsible for EPC construction.

●Energy storage project development cooperation

The two parties will establish a joint venture in Qidong, and build an 80MW/160MWh energy storage sharing power station in Qidong through the joint venture. They will strive to start construction in 2021 and connect to the grid at full capacity before June 30, 2022. In compliance with laws and regulations, Linyang Energy or its affiliates will be given priority to be responsible for the EPC and operation and maintenance of the invested projects under the same conditions.