Yingli Green Energy Holding Company Limited (NYSE: YGE) has announced a new pact that has shares rising this morning. The company entered into a strategic sales agreement at the PV America conference in Philadelphia, PA. and has agreed to supply Recurrent Energy with crystalline PV modules through 2012. This supply pact is for expected use in Recurrent Energy’s distributed solar projects. According to the company, the projects typically range from 2 to 20 MW. The agreement will also be to cover the U.S., Canada, Europe and other markets.
This news does have Yingli shares trading higher on the news. The issue is that it is still just an incremental amount. If you go back to the company’s guidance in May, Yingli reduced its 2009 production outlook to a lower range down to 450 to 500 megawatts. It had previously forecast a range of 550 to 600 megawatts.
2 to 20 megawatt projects can add up. Recurrent is the one that has a 5 megawatt project planned in San Francisco, CA. That is a rather large project, but if you start doing the math it will take many of these projects to make much of a dent in that annual production target.
Yingli is trading up about 3.5% at $15.84 in pre-market trading. Its 52-week range is $2.50 to $21.30.
Jon C. Ogg
June 9, 2009
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