SHIJIAZHUANG, Jul. 3, 2009 (Xinhua News Agency) -- Yingli Green Energy Holding Company Limited (NYSE: YGE), one of the world's leading vertically integrated photovoltaic product manufacturers, announced Thursday it has been selected by SDIC Huajing Power Holding Co., Ltd., a subsidiary of the State Development and Investment Corp. (SDIC), to supply PV modules for a 10 MW on-grid solar plant in Dunhuang, Gansu Province.
SDIC has recently been entitled by the National Development and Reform Commission to develop additional 10 MW on-grid solar plant in Dunhuang after LDK Solar Co., Ltd. (NYSE:LDK) (LDK.NYSE), in an alliance with China Nuclear Power Engineering Co. and the Belgian Enfinity, has won the bid for the pilot Dunhuang 10MW photovoltaic (PV) station project at a price of 1.09 yuan/kwh.
The on-grid electricity price of the solar plant to be built by SDIC will be the same to the price offered by bidding winner of the Dunhuang project.
Yingli Green Energy had formed an alliance with SDIC Huajing in the bidding for the pilot Dunhuang 10 MW on-grid solar plant and offered the lowest bidding price of 0.69 yuan, but failed to win the bidding since the government regulator decided to take the price for Dunhuang project as the unified benchmark for PV solar power (OTCBB:SOPW) project to be developed in the coming two years and deemed that such a low price is unfavorable for the promotion of PV industry nationwide.
As part of the strategy to build a greater presence in China's domestic solar market, Yingli Green Energy is seeking to establish strategic relationships with leading grid companies, whose wealth of experience in China's power supply market gives them unique insights into the domestic solar market, said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.
SDIC Huajing Power is a Shanghai-listed company engaged in investment, generation, operation and sale of electric power. It operates power generation plants in Gansu, Yunnan, Jiangsu, Fujian, Anhui and Guangxi provinces, China. By 2010, SDIC expects that 3 percent of its generators will be powered by non-water renewable energy, and by 2020, it expects that figure to rise to 8 percent.
Analysts here enterprises (OTCBB:HRTE) can hardly make profits with the bidding price now.
