Tier-one PV manufacturer Yingli Green’s holding subsidiary, Yingli Energy (Beijing) has entered into an agreement with CFC Group Construction to supply 170MW of solar panels for utility-scale PV plants in the Hebei province of China, marking Yingli’s largest ever panel supply agreement in China.
Yingli will deliver more than 650,000 multicrystalline YGE Series solar panels to CFC Construction during the second half of 2015. The panels will be installed in power plants located in the city of Zhangjiakou, which recently won the rights to host the 2022 Winter Olympics. The panels are expected to generate more than 200,000MWh of electricity.
The precarious financial position of Yingli Green was highlighted recently in its second quarter financial results and subsequent earnings call with financial analysts. The company had slashed its third quarter and full-year PV module shipment guidance from a range of 3.6GW to 3.9GW to only 2.5GW to 2.8GW. PV Tech assessed that Yingli Green would have approximately 1,350MW of unused capacity in 2015, resulting in average utilisation rates of around 63% to 65% in 2015.
However, Yingli Green management noted in its earnings call that it was working with an unspecified number of other Chinese PV manufacturers to provide tolling (OEM) module services to keep production utilisation rates as high as 90% through the second half of the year.
Liansheng Miao, chairman and chief executive officer of Yingli, said: “We are pleased to enter into our largest supply agreement to date in China with CFC Construction, one of China's most competitive construction contractors. Our highly durable Yingli Solar panels deliver superior performance in the harsh weather conditions that characterize Zhangjiakou and its surroundings, and we look forward to broadening access to solar power in communities across the region thanks to our partnership with CFC Construction.”