Yingli Green Energy Japan Corporation, a unit of Yingli Green Energy Holding Company Limited (YGE), has entered into a contract to provide 32 megawatts (MW) of multicrystalline photovoltaic (PV) modules to a large-scale Japanese project. The market reacted positively to the news with the company's share price edging up around 3.2% to $3.56 on Jul 23, 2014 from the prior session.
Per the agreement, Yingli Green Energy will supply 108,000 YGE 72 Cell Series modules. The delivery will commence from Jan 2015 and will complete in Dec 2015.
The solar project located in Okayama, Japan will be constructed by the Tokyo-based power plant development company Pacifico Energy K.K. GE Energy Financial Services, a division of General Electric Company (GE), will finance the project. The project’s estimated annual power generation capacity is 37,000,000 Kilowatt-hour (KwH).
The YGE 72 Cell Series modules weighing 26.8 kilogram have a dimension of 1970 mm/990 mm/50 mm. It has efficiency of up to 15.6% and positive power tolerance of -0 watt (W) to +5W. The modules are capable of providing at or above rated power and can withstand wind and snow loads of up to 50 per square foot (psf) and 113 psf, respectively.
The demand for renewable energy is steadily on the rise given the growing awareness about its benefits. Japan figures prominently among the emerging solar markets particularly after the Fukushima disaster that led the country to deactivate its nuclear reactors.
As per the shipment figures reported by the Japan Photovoltaic Energy Association, the country’s PV market recorded 60% year-over-year growth in the final quarter of the country’s fiscal year 2013. In 2014, Japan is expected to install more than 10 gigawatts (GW) of solar power, more than 50% of which will be utility-scale solar. In Asia, Japan is anticipated to dominate the global PV industry after China.
To tap this growing solar market, in Jan 2014, Yingli Green Energy has inked a distribution agreement with the leading Japanese solar energy company and full-service PV system provider XSOL Co., Ltd. to sell and promote the YGE 60 Cell Series modules in Japan.
Other solar module players also have their sights on Japan. In 2013, JinkoSolar Holding Co., Ltd. (JKS) opened its first sales office in Tokyo and unveiled a new series of Smart Modules at the PV Expo held in Japan in Feb 2014. Another solar power company Canadian Solar Inc. (CSIQ) secured a contract earlier this year to supply 43-MW of PV modules to Japan’s second biggest solar plant project.
The Zacks Rank #2 (Buy) Yingli Green Energy, one of the official sponsors of the recently concluded FIFA World Cup, seems to have a promising order book. Its solar products have found its way to projects ranging in size from a few kilowatts to multi-megawatts in markets around the world. A continuous stream of supply contracts, both domestic and international, will keep this Chinese solar company’s cash inflow stable.
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