China dispatch: Momentum building behind yieldcos


Solar yieldcos continue to grow in importance in the global PV landscape, with Chinese companies the latest to move. Forming yieldcos, to then take to IPO on either domestic Chinese or foreign stock exchanges. The move frees up funds currently tied up in project development and delivers ongoing project demand.

The PV power plant development business of CSI already comprises a large part of its total revenues, with it accounting for 35.9% in Q1 2015. Furthermore, in February the company purchased independent power plant developer Recurrent Energy LLC from Sharp, which had a number of projects in development. In order to finish construction of these projects before end of 2016, when the U.S. government is scheduled to step down the investment tax credit for solar investments, CSI said it is considering seriously forming a yieldco to take to IPO.

A number of challenges exist to realizing such a strategy in China. Developers are reporting a range of problems such as power plant quality issues, grid constrains, high-levels of accounts receivable, and even insufficient and unpaid subsidies. These factors may cause lower market valuations for projects in China.

Despite these disadvantages, Chinese PV players are continue to pursue yieldcos as an efficient method for funding of PV in the country and abroad, especially PV power plants, in light of the currently booming market.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact:


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.