Yingli Green Energy eyes solar power plant in Beijing

Yingli Green Energy Holding Co. Ltd has entered into a framework agreement with the local government of a county in Beijing, China regarding the proposed construction of a 10MW solar power plant.

Under the framework agreement, a wholly-owned subsidiary of Yingli Green Energy and an entity controlled by the county government would establish a new company to construct the plant. Subject to further negotiations, the construction of the project would be expected to begin in the 2H 09. In addition to further negotiations, governmental approvals relating to, among other things, project planning, connection to the electricity transmission grid and the feed-in tariff are expected to be required and therefore no assurance can be given that the project will proceed as currently contemplated or at all.

"We are excited about this opportunity to construct an on-grid solar power plant in Beijing, which would be the first solar power plant we construct and operate," commented Liansheng Miao, chairman and CEO of Yingli Green Energy. "We believe our participation in this project is in line with our strategy of expanding into downstream applications of PV [photovoltaic] technology and will further strengthen our vertical integration business model."