Credit: Shutterstock photoChinese solar photovoltaic (PV) manufacturer Yingli Green Energy Holding Company LimitedYGE announced that it has supplied 1.01 megawatt ("MW") of solar panels for the largest solar project in Venezuela.
The project, developed by Consorcio Energias Limpias Alternativas Venezolanas, is a hybrid solar-diesel power plant located in Los Roques. This is the country's inaugural PV power plant, containing more than 4,400 multicrystalline Yingli Green Series solar panels that can generate over 1.4 gigawatt hour ("GWh") a year. This is sufficient to power over 400 typical Venezuelan homes.
The system began operating in May 2015 and can cut diesel-related logistics costs by at least 50%. Venezuela is looking to add more hybrid solar-diesel plants to not only boost the renewable energy share in the country but make electricity accessible in remote areas.
Yingli Green's manufacturing covers the PV value chain from ingot casting and wafering through solar cell production and solar panel assembly. The company has over 30 regional units and branch offices and has distributed more than 13 GW of solar panels worldwide.
Yingli Green expects global PV demand to show healthy growth in 2015. The company's total revenues increased 8.4% year over year in the first quarter mainly due to higher PV module shipments.
The company however revealed in its Annual Report with the SEC last month that it may be unable to emerge from "substantial indebtedness." According to the filing, Yingli Green had about $1.6 billion of short-term borrowings along with long-term debt of $460 million as of Dec 31, 2014.
The company has in fact failed to generate profits since 2011. In this scenario, Yingli Green will find it difficult, if not impossible, to pay down its outstanding debt, thereby leading to cross-defaults, putting it at liquidation risk. It also faces intense competition from other Chinese solar majors like Trina Solar Ltd. TSL , JA Solar Holdings Co. Ltd. JASO and JinkoSolar Holding Co., Ltd. JKS .
Yingli Green is nevertheless working to return to profitability by lowering its operating expenses and manufacturing costs.
Yingli Green currently has a Zacks Rank #3 (Hold).
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