Solar panel manufacturer Yingli Green Energy Holding Company Limited (YGE) also known as “Yingli Solar” completed a 10 megawatt (“MW”) solar power plant in China's Hebei Province in late Dec 2014. The company is presently looking for a buyer for this project, which is located in Fuping, a mountainous region in western Hebei Province.
We believe Yingli Solar will not find it difficult to find a buyer for the solar farm, as the Hebei Province is one of the most polluted provinces in China due to its thriving steel industry. This province has loads of coal based power generation units, supplying power to the steel industry.
The addition of renewable power generation units in the region will help to cut down on pollution. Earlier last year, Yingli Solar completed a 15 MW solar project in this province and transferred the same to the JV fund established with Shanghai Sailing Capital.
The State Council of China has set an ambitious target for the development of PV power generation by 2020. China aims to generate 100 gigawatts (“GW”) of solar power by 2020, which means additions of nearly 11 GW of PV power generation every year until 2020. This will definitely boost the prospects of Chinese solar cell producers like JA Solar Holdings Co., Ltd. (JASO), JinkoSolar Holding Co., Ltd. (JKS) and Trina Solar Limited (TSL) among others.
Yingli Solar currently has nearly 1.4 GW of PV projects at different stages of approval across a dozen provinces in China. Since the Chinese government has made its intention clear of lowering emission and adding more renewables in the system, the increasing usage of solar power among other renewable energy sources is a foregone conclusion.
In addition to the rising domestic demand, Yingli Solar is expanding its footprint in the Latin American and European countries. Yingli Solar also stands to benefit from Japan’s focus on green power post nuclear deactivation. Yingli Solar expects to control nearly 10% of the Japanese solar power market in 2015.
Yingli Solar currently has a Zacks Rank #3 (Hold).
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