Under the framework agreement, a wholly owned subsidiary of Yingli Green Energy and an entity controlled by the county government would establish a new company to construct the plant.
Subject to further negotiations, the construction of the project would be expected to begin in the second half of 2009. In addition to further negotiations, governmental approvals relating to, among other things, project planning, connection to the electricity transmission grid and the feed-in tariff are required.
Liansheng Miao, chairman and CEO of Yingli Green Energy, said: We are excited about this opportunity to construct an on-grid solar power plant in Beijing, which would be the first solar power plant we construct and operate. We believe our participation in this project is in line with our strategy of expanding into downstream applications of PV technology and will further strengthen our vertical integration business model.
