Yingli Green Energy and a subsidiary of state-owned China National Nuclear Corporation (CNNC) have signed an investment agreement to enter a joint venture (JV) with the goal of developing 500MW of distributed solar power capacity.
According to Yingli Green, the company signed a framework agreement with the CNNC subsidiary, China Rich Energy “several months ago”. The signing of the latest agreement brings the projects one step closer as the two companies enter the implementation stage.
The 500MW of projects will be located across China, with 200MW of the total to be sited on land belonging to CNNC or its various subsidiary companies. As distributed energy projects, the power generation capacity will be located in close proximity to the end users at each plant. It has not been revealed how many plants will be built in total or where they will be located.
CNNC deputy general manager, Hongchao Xu, who is also the chairman of the JV, said that while CNNC remained committed to nuclear power development, the company was also “increasing its activities in the renewable energy space”.
Liangsheng Miao, chairman of Yingli Green said: “In light of policies recently adopted by the Chinese government, we expect distributed generation solar projects will embrace rapid growth in China in the near term.”
Miao said that in addition to continuing to develop large scale projects, Yingli Green will “also actively engage in the development of distributed generation PV applications in line with the Chinese government's policies”.
China has recently adopted a national distributed solar generation capacity target of reaching 20GW by 2015.
The announcement closely follows news last week that Yingli Green has also formed a JV with Chinese state-owned mining company Datong Coal Mining Group. The Yingli Green-Datong JV will develop and construct plants in Shuozhou City, in the province of Shanxi, northern China, in a move that Liangsheng Miao said gave Yingli a “strategic avenue” to expand its domestic downstream business.