Taiwan’s NSP announces yieldco

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Solar cell producer, NSP has said it plans to invest $50 million in the yieldco in order to grow its solar system portfolio with subsidiary, General Energy Solutions Inc., and "generate a steady profit source for NSP Group."

The yieldco is expected to be publicly listed on the Hong Kong Stock Exchange at the end of 2015, or by Q1 2016 at the latest.

In a statement issued, NSP said the yieldco, "will not only provide a steady profit source but also significantly expand solar system projects for NSP Group and therefore increase NSP’s sales pipelines for solar cells and modules." It added, "Additionally, GES of NSP Group can also leverage the abundant funds coming from the YieldCo to more aggressively construct solar farms globally."

In a recent investment note, Deutsche Bank stated that yieldcos in both established and emerging solar markets are proving to be a major driver of growth the solar sector. Research analyst Vishal Shah commented, "Yieldcos are enabling companies to sign relatively low priced PPAs."