On May 24, Jiangsu Xineng announced that, in order to support the implementation of the GuoXin Yangdian 2×100 MW Phase III Expansion Project (hereafter referred to as the “Yangdian Phase III Project”), its subsidiary, Jiangsu Xineng Haoyang New Energy Development Co., Ltd. (hereafter referred to as “Xineng Haoyang”), plans to remove and relocate part of its photovoltaic projects located at the site of Jiangsu GuoXin Yangzhou Power Co., Ltd. (hereafter referred to as “GuoXin Yangdian”). The estimated loss from this removal and relocation, based on the assessment conclusion, amounts to 47.02 million yuan, which will be compensated to Xineng Haoyang by GuoXin Yangdian in cash. If the agreed relocation of 10 MWp cannot be completed and power generation restored as per the contract, GuoXin Yangdian will compensate Xineng Haoyang in cash at a maximum of 4 million yuan/MWp, based on the actual loss incurred.
According to the announcement, this decision was approved in the seventh meeting of the third board of directors of Jiangsu Xineng. Xineng Haoyang was established as a joint investment between Jiangsu Xineng, which holds 51% of the shares, and GuoXin Yangdian, which holds 49%. Xineng Haoyang serves as the implementation entity for the photovoltaic power generation project located within the GuoXin Yangdian site, with a total capacity of approximately 20.23 MWp.
On February 26, 2025, the Jiangsu Provincial Development and Reform Commission issued a notice regarding the planning and implementation of the “14th Five-Year” mid-to-late stage supporting coal power project (Su Fa Gai Energy [2025] No. 170). The Yangdian Phase III Project was included in the provincial planning scheme for supportive coal power projects, with its site overlapping with some locations of the already operational Haoyang photovoltaic project. To meet the electricity needs for social and economic development in Jiangsu during the “14th Five-Year” period, Xineng Haoyang will cooperate by removing approximately 15 MWp of photovoltaic equipment and related facilities located in the area planned for the Yangdian Phase III Project, relocating about 10 MWp of these facilities to other areas within the GuoXin Yangdian site.
Based on the asset valuation report issued by Jiangsu Zhongqi Huazhong Tian Asset Evaluation Co., Ltd. (Su Zhong Zi Ping Bao Zi [2025] No. 2072), Xineng Haoyang plans to dismantle approximately 15 MWp of photovoltaic assets due to the construction of the Yangdian Phase III Project. This includes 10 MWp of reusable photovoltaic assets set for relocation, while another 5 MWp of photovoltaic assets that cannot be reused will be disposed of. The evaluation was conducted using the market approach, with a valuation date of March 31, 2025, resulting in an impairment assessment (including value-added tax) of 47,020,015.69 yuan.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/loss-of-47-02-million-yuan-from-relocation-of-15mwp-photovoltaic-equipment-in-jiangsu/
