United PV’s 16 Solar Power Plants Have Been Incorporated into the 6th Batch of Renewable Energy Subsidy Catalog Total Subsidy to Be Received Amounts to RMB1.3 billion
United Photovoltaics Group Limited (“United PV” or the “Company”, stock code: 00686.HK, the largest shareholder – China Merchants New Energy Group Limited (“CMNE”) is pleased to announce that 16 solar power plants of United PV have been incorporated into the 6th batch of Renewable Energy Subsidy Catalog (the “6th Batch Catalog”) jointly compiled by Ministry of Finance, National Development and Reform Commission (“NDRC”) and National Energy Administration (“NEA”). Total subsidy to be received amounts to RMB1.328 billion.
The Company expects its operating cashflow to further improve upon receipt of the subsidy, which will in turn support the expansion of its business and geographical footprint, and enhance returns to shareholders.
Following the announcement of joint ratification of the Paris Climate Change Agreement by China and US dated 3rd September, we expect to see a more regular subsidy offering from the government in support of the development of renewable energy. The Company also belives greater development potential ahead for clean energy such as solower power, as China pushes through energy conservation and emission cut (including various carbon emission policies).