to-the-point: Yingli postpones production plans for Brazil
Solar panels. Author: David Goehring. License: Creative Commons, Attribution 2.0 Generic
Yingli Green Energy Holding Co Ltd (NYSE:YGE) has put off its plans for an assembly plant in Brazil, the Chinese photovoltaics (PV) maker’s country manager in Brazil told Bloomberg.
The tough market conditions in the country currently make it “very challenging” to commence production, Markus Vlasits was cited as saying.
The fall of the Brazilian real has put in question the future of many solar developments in the country. In April, LAS Research founder Rugi Kavamahanga warned that the vast majority of the 890 MW winning solar projects in Brazil’s October 2014 auction will not be realised due to financing issues.
At the said auction, PV project developers won 20-year power purchase agreements (PPAs) at an average electricity sale price of BRL 215 (USD 70.7/EUR 62) per MWh. At that time, solar experts were worried that the price was too low and the dollar appreciation now “makes profitability even more of a stretch”, Kavamahanga told SeeNews Renewables.