Yingli Green Energy Holding Company Limited (Yingli Green Energy) has announced the establishment of a strategic alliance with a subsidiary of China Guangdong Nuclear Power Holding Co., Ltd. to explore the opportunities for development of on-grid solar projects both in China and overseas markets. The company has agreed with Hainan Provincial Development Holding Company Limited to form a joint venture, Hainan Yingli New Energy Resources Co., Ltd.
The joint venture is formed to build manufacturing facilities with annual production capacity of 100 MW in each of polysilicon ingots and wafers, PV cells and PV modules in Haikou, Hainan Province. Under the agreement, Yingli Green Energy will hold an 80% equity interest in Hainan Yingli. The establishment of Hainan Yingli will be subject to the approval of Yingli Green Energy’s board of directors.
In addition, Yingli Green Energy has agreed with Hainan Development and Hainan Provincial Water Conservancy & Power Group Company Limited, a state-owned enterprise in Hainan Province, to form another joint venture, Hainan Green Islands Power Company Limited (Green Islands Power) to develop and operate on-grid solar projects in Hainan Province. Under the agreement, Yingli Green Energy will hold a 20% equity interest in Green Islands Power. It is expected that Green Islands Power will develop on-grid solar projects totaling up to 300 megawatts from 2009 to 2011 in Hainan Province.
China Market Business Updates
Yingli Green Energy hosted a forum in Baoding, the first of its kind in China, to discuss the establishment of industry standards and project financing in connection with the construction of on-grid solar plants in China.
We are very excited to be participating in the development of China’s PV industry, commented Liansheng Miao, chairman and chief executive officer of Yingli Green Energy. Following the launch of China’s PV incentive policies, including the Ministry of Finance’s announcement yesterday of the Golden Sun Demonstration Program, a subsidy program for the PV industry in China, and the kick-off of the construction of a 10 MW on-grid solar plant in Dunhuang, we expect there will be many additional near-term opportunities in the China market. As one of the world’s leading PV players and a pioneer in China’s domestic PV industry, we are actively seeking opportunities to expand our market footprint through cooperation with provincial and municipal governments as well as leading utilities companies.
Miao continued, As such, we are particularly excited about our expansion into Hainan Province, an area rich in solar resources and benefiting from strong local government support. Our newly proposed joint ventures, Hainan Yingli and Green Islands Power, will be the province’s first PV manufacturer and PV project integrator, respectively. As a renewable energy company, we are dedicated to driving the viability of PV applications and supporting sustainable development worldwide and we see these recent moves in the China market as natural extensions of our growth strategy and corporate mission.