The World's #1 Renewable Energy Network for News, Information, and Companies.

Sharp to Sell Full Stake in Solar Project Developer Recurrent Energy

Despite the lack of an official announcement by the Sharp Corporation, it's been reported by Bloomberg that the Osaka-based electronics company is seeking to sell Recurrent Energy LLC, a solar project development company it acquired in 2010. As part of a larger restructuring plan, Sharp is predicted to sell full stake in the San Francisco-based company, which it bought for $305 million, for the U.S. equivalent of $321 million (25 billion yen).

According to two unnamed sources, additional restructuring efforts on the part of Sharp will also include a significant amount of loans backed by the company’s two primary banks, Mizuho Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. The “revival package” is earmarked at somewhere in the neighborhood of 360 billion yen. The Kyodo News agency in Japan is also reporting that restructuring efforts are likely to result in the loss of nearly 11,000 jobs by early 2014.

Arno Harris, CEO of Recurrent Energy, provided a written statement emphasizing that the impending sale by Sharp should be seen as no reflection on the profitability of his company or the state of the solar industry as a whole.

“With almost 700 MW of contracted projects and a 2.5 GW project pipeline, Recurrent Energy’s business is strong, profitable and growing,” Harris said. “We continue to meet and exceed our business goals as we build out our contracted project portfolio. To date we have secured almost $2 billion in project finance commitments from third parties and have ample capital to execute on all existing projects.” 

Addressing the wider issue of the viability of the solar industry — and a move by Sharp that some may view as a desire to divest itself of its interest in solar panel and solar cell production, which it’s been mass producing since 1963 — Harris added, “The manufacturing side of the solar industry is experiencing some growing pains, but cost reductions continue to drive a robust market for leading developers like Recurrent Energy. Realignment is a natural part of industry maturity, which will ultimately unlock tremendous value, stimulate a new era of growth and make solar a pillar of mainstream energy markets.” 

According to the company’s LinkedIn profile, Recurrent Energy currently has between 51 and 200 employees and is hiring for several positions. Although there has been no official word yet on how the sale of the company may impact those employees, Harris’s words seem to indicate that the separation from Sharp will only be felt as a minor hiccup on continued operations.

“Recurrent Energy has excellent and long-standing relationships with the major financial institutions engaged in the energy sector,” Harris said, “and we have every confidence, based on our industry-leading position in North America and our strong profitability, that Recurrent Energy will retain the interest of financial sponsors, whether Sharp, a new sponsor, or a combination of the two.”

Requests for additional comments from Mr. Harris were not immediately returned at the time of this publication.

UPDATE: Sharp plans to halt its solar cell and module production and sales in the U.S. and Europe by March, and plans to either sell or consolidate its solar product manufacturing plants in Japan, according to Bloomberg.

Lead image: For sale sign via Shutterstock

RELATED ARTICLES

A biogas plant concept from Weltec Biopower

Europe Versus Renewable Energy?

Tildy Bayar, Contributor Wednesday morning’s 'Regulation and the Marketplace' panel discussion at POWER-GEN Europe in Amsterdam got off to a lively start with a presentation from Randy Mott, president of Polish biogas- and geothermal-base...

The Real Price of Free Solar

William Hirshman, International Correspondent

For a technology known for its tranquility and quietness, the noise surrounding PV as solar leasing becomes the driving force for sales is getting uncomfortably shrill — the pitch of sales pitches is rising.

Wind turbines

Why It's Time To Get Real About Energy Security

Hannah Smith, Contributor Energy is Europe’s quiet crisis. While the clamour of failing economies, desperate migrants and political clashes grabs the headlines, energy policy is rarely front-page news, but it should be — the statistics are shocking.

Largest Solar Farm in Virginia Just Commissioned by Amazon Web Services

Renewable Energy World Editors Back in 2012, Amazon received a failing grade from Greenpeace regarding its use of renewable energy to power its cloud centers. Skip a couple years and in 2014 Amazon Web Services (AWS) announced a goal of achievi...
Vince Font is a freelance journalist specializing in the fields of renewable energy, high tech, travel, and entertainment. Read his blog at www.vincefont.com or follow him on Twitter @vincefont.

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Microgrid Global Innovation Forum

Microgrid Global Innovation Forum  This event brings together thoug...

Grid Edge Live

Grid Edge Live 2015 The impressive two and a half day agenda addresses k...

2015 Solar Power International

Stop by and visit Canadian Solar at the 2015 SPI show!

COMPANY BLOGS

Signing a Solar Lease? Here are Five Things You Need to Know

Solar leases have grown in popularity, and they continue to be one of th...

Could Flashing An Unsigned Check Capture A Signed One?

Please take a moment to vote for us! With the funding from this gr...

DIY: Don’t Install Yourself

You finally made the choice to go solar. Seems like it might be pretty e...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS