We started our IPP business by owning and operating solar power projects and selling electricity generated by these solar power projects.
We have tried to build our business as an IPP to develop and operate DG projects in well-developed regions, and focus on projects with credit worthy Commercial and Industrial (C&I) off-takers or favourable FiT/PPA.
While our primary focus is the sale of solar projects, which creates an efficient recycling of capital, we also operate an IPP business by retaining some projects primarily in well-developed areas, where we sell the electricity to credit worthy Commercial and Industrial (C&I) off-takers at favorable FiT/PPA.
As we evolve and transform into an asset-light solar project developer, we are on track to monetize our China DG assets, enabling us to strengthen our balance sheet, reduce leverage, and improve cash flow. We plan to use the cash to develop more high-margin solar projects.