Yingli Green Energy Europe GmbH ("Yingli Europe"), a wholly owned subsidiary of a leading manufacturer of photovoltaic (PV) products in China, Yingli Green Energy Holding Co. Ltd. YGE, has agreed to extend the existing partnership with one of Poland’s leading developers of PV products, R.Power Sp. z o.o. ("R.Power"), in developing ground-mounted solar PV projects in Poland.
The companies aim to build 60 megawatt (“MW”) of ground-mounted projects, up from last year’s announcement of 30 MW. These projects will be included in Poland’s auction systems over the next two years.
Under the terms of the agreement, each party will hold an equal stake in the projects and will sell them off to investors once they commence commercial operations. The first bundle of these projects has already reached an advanced stage of development.
This agreement is consistent with Yingli Europe’s strategy of expanding its international presence by partnering with major regional players. R.Power’s knowledge of the Polish energy sector, together with Yingli’s expertise in identifying global energy trends and understanding of the complex development process, will ensure success for this project.
The EU is advocating the usage of renewable energy among its member countries. Poland to meet its target under EU emission rules require renewable sources to account for 15% of its energy generation by 2020. In compliance with this rule, the Polish Ministry of Economy has set plans to install 11 gigawatt (GW) of renewable energy systems by 2020.
Since the sun is everywhere, solar projects are coming up in other parts of the world as well. China, India and Japan are targeting to add nearly 100 GW to their electricity generation system by 2020, 2022 and 2030, respectively. Yingli can capitalize on these opportunities as these will require solar modules in large quantities to meet the targets. The company is better positioned than most other large utility scale solar companies in terms of logistics of supply.
Zacks Rank
Yingli Green Energy carries a Zacks Rank #3 (Hold). Some better-ranked peers worth checking out are JA Solar Holdings Co., Ltd. JASO and ReneSola Ltd. SOL, both sporting a Zacks Rank #1 (Strong Buy) and Canadian Solar Inc. CSIQ, carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment