Yingli Green Energy Holding Company Ltd.
) announced that its solar modules were used to build the largest
solar power plant in Malaysia. The deal was done through its
business wing, Yingli Green Energy Singapore Company Pte. Ltd. The
project undertaken by Amcorp Power Sdn. Bhd is situated in the
Gemas, Negri Sembilan region of Malaysia. The market reacted
positively to the news with Yingli Green's share price surging
8.20% to close at $3.30.
The plant is fitted with over 10 megawatts (MW) of Yingli Solar's
photovoltaic (PV) modules. The joint venture between Yingli and
Amcorp was signed back in Mar 2013 with the project being
commissioned in June. The deal involved Yingli Solar delivering its
60 Cell Series solar panels for the 10.3 MW solar power plant.
The complex is spread across an area of roughly 34 acres and is
equipped with over 40,000 of Yingli Solar's multicrystalline
modules which will produce nearly 13.6 million kilowatt-hour of
clean power per annum. In addition to supplying PV modules, the
company also offered after-sales support to the project.
Yingli Solar is set to be a prominent player in the emerging
renewable market worldwide.The solar PV market in China is rapidly
evolving as favorable policy environment aims to meet the growing
energy needs from green sources. In 2013, China added an astounding
12 gigawatts (GW) of solar capacity, up from 3 GWs in 2012.
Japan is also not far behind. The country's PV market recorded 60%
year-over-year growth in volume in the final quarter of fiscal 2013
with relatively steady imports. With solar PV projects of over 20
GW in the pipeline, Japan is anticipated to be the second to
dominate the global PV industry after China in Asia.
Yingli Solar's emphasis on offering cutting-edge solar
manufacturing products to its customers will act as a tailwind.
Yingli Solar recently announced trial production of its M-SI
modules known as N-type Metal-Wrap-Through, or "N-MWT," technology,
which might offer a competitive edge over other solar operators.
The N-MWT boasts of diminishing power loss in the panel
encapsulation process and boost cell efficiency.
Meanwhile, a strong year lies ahead for the global renewable market
as solar consumption is likely to increase by 36% in 2014 as per
Solar Tribune report. Yingli Solar is expected to capitalize on
this bullish solar market conditions by shipping 4 Gigawatts of PV
in 2014, exceeding 2013 levels by 33%.
However, the ongoing solar tariff wars between the U.S. and China
might pose challenge for the company as America is one of its prime
customers. Currently, Yingli Solar carries a Zacks Rank #3 (Hold).
Other better-placed renewable operators include Zacks Ranked #1
JA Solar Holdings Co., Ltd.
Covanta Holding Corporation
). Investors may also consider Zacks Ranked #2 (Buy)
First Solar, Inc.
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