Hanwha SolarOne, which recently said it expected to see “more momentum” on its activities in China, has signed a five-year partnership agreement to develop 100MW of distributed generation PV projects in Yantai, northern China.
The PV module maker announced today that it had signed a Memorandum of Understanding (MoU) to form a “long-term strategic partnership” with the local bureau of commerce in Yantai. Hanwha SolarOne will own and operate the 100MW of plants, as well as developing them.
The port city, in Shandong Province, sits on the coast of a peninsula that faces East across the sea toward Korea. Under the terms of the MoU, which is valid for five years and can be withdrawn at 90 days notice by either party, the Yantai Bureau of Commerce will assist Hanwha SolarOne to secure suitable rooftop space as well as facilitating project approval and grid connection. The bureau will also help Hanwha SolarOne to gain tax preferences and project financing.
Hanwha SolarOne’s chief financial officer, Jay Seo, commenting on a module supply deal the company struck to supply a number of ground-mounted projects in Inner Mongolia, said in September that Hanwha SolarOne was expecting “more momentum” in its China business in the near future. He said this was partly as a result of China’s 13GW target for the year now being formalised but also due to steps being taken by the Chinese government to support distributed generation. Seo is also head of the company’s China division.
Speaking about the latest announcement, Seo said the partnership had already allowed Hanwha SolarOne to identify suitable space for 8MW of rooftop projects, for which the company is currently securing permits. According to Seo, Hanwha SolarOne will use its own modules and carry out all engineering, procurement and construction (EPC) duties, not just for the 8MW of already-identified projects, but for all forthcoming projects under the Yantai MoU. Seo also said the recently set government targets were influencing deployment positively.
“The latest government initiatives are already having a meaningful impact on the acceleration of distributed generation projects in China and we feel we are ideally positioned to gain further traction in the market going forward.”