BJEI seeks partners for Australian solar approval

Beijing Energy International Holding (BJEI) is looking for new investors to help acquire several solar farms in Australia, with the aim of addressing regulatory concerns over Chinese state-owned enterprises owning critical energy assets.

BJEI announced in December a deal worth up to A$813 million ($535.44 million) to purchase five solar farms from Lightsource BP, a joint venture soon to be fully owned by BP. This acquisition accounts for over 80 per cent of last year’s total Chinese investment in Australia.

The deal is pending approval from Australia’s Foreign Investment Review Board (FIRB). Warwick Smith, chairman of BJEI’s local subsidiary, said the company has met all FIRB regulatory requirements and is optimistic about the deal.

BJEI, which entered the Australian market in 2014 by purchasing a wind farm, aims to become the largest owner of utility-scale solar projects in the country with its acquisition of the solar farms.

The Australian government is closely monitoring foreign investments in the renewable sector due to national security concerns. BJEI also plans to buy Australian electricity and gas retailer CovaU, with a decision from FIRB expected by July 31.

While bilateral relations are improving, analysts believe Chinese investments in Australia will not return to their 2016 peak of approximately $11.5 billion.

Attribution: Reuters.