SPI Energy, a provider of PV solutions for business, residential, government and utility customers and investors, announced that its subsidiary Gonghe Xinte Photovoltaic Power Generation Co., Ltd. has entered into a 10-year leasing agreement with China Kangfu International Leasing Co., Ltd. (China Kangfu), pursuant to which China Kangfu has already provided financing of RMB140 million to support the 20MW Gonghe Xinte solar power project in Qinghai Province.
Under the agreement, both parties shall establish a long-term strategic partnership leveraging their respective strengths and collaborate to promote clean renewable energy projects. China is aiming to triple its solar power capacity by the year 2020 to as much as 143 gigawatts to help reduce carbon emissions, according to the country's National Energy Administration.
China Kangfu is one of the pioneers of China's financial leasing industry. Founded in 1988 and headquartered in Beijing, its major business areas cover energy and electricity, equipment manufacturers outsourcing, healthcare, and operating and cross-border leasing. China Kangfu's shareholders include Sany Group, the largest heavy machinery manufacturing firm in China, and Morgan Stanley, the global investment bank.
"We are pleased to build a long-term partnership with China Kangfu to capitalize on the fast-growing solar market in China," said Xiaofeng Peng, Chairman and CEO of SPI Energy. "SPI has an outstanding global portfolio of PV power projects and we believe that China Kangfu's strong financial resources and industry experience makes it an ideal local partner to support our growth strategy and enhance our leading position in the solar industry."