Yingli Green Energy Holding Company Limited, the vertically integrated photovoltaic ("PV") module manufacturer in the world, known as "Yingli Solar", announced on January 7th that its wholly-owned subsidiary, Yingli Energy (China) Company Limited, has entered into an investment agreement for the establishment of a joint venture with China Rich Energy Corporation Limited, a wholly-owned subsidiary of China National Nuclear Corporation, to develop and construct distributed generation solar projects across China. As distributed generation systems, these projects will be located in close proximity to end-users of the electricity to be generated by such projects.
Yingli China and China Rich Energy signed a framework agreement several months ago to outline their long-term, strategic cooperative relationship. The framework agreement contemplates establishment of the JV which will develop 500 MW distributed generation solar projects across China, 200 MW of which will be installed on sites to be provided by CNNC or its subsidiaries. Signing of the investment agreement indicates that the cooperation between Yingli Solar and China Rich Energy enters into the implementation stage.
"While CNNC remains committed to nuclear power development, we are increasing our activities in the renewable energy space, in order to expand our development space. The cooperation with Yingli Solar reflects our strategy and is in line with the strategic targets of the Chinese government to promote ecological civilization and sustainable development. We believe we will make a powerful combination and mutually beneficial cooperation by leveraging advantages of both companies," commented Mr. Hongchao Xu, Chairman of the JV and Deputy General Manager of China Rich Energy.
"We are delighted to establish the joint venture with CNNC," said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "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. Yingli Solar not only has made remarkable achievements in the development of large-scale PV power plants, but will also actively engage in the development of distributed generation PV applications in line with the Chinese government's policies."