• China Cleantech Update February 27, 2017

    News Summary:

    • CWEA publishes wind installation statistics for 2016
    • NEA publishes guiding opinion on energy work for 2017
    • Yingli Solar receives noncompliance notice from NYSE 




    Wind: 2016 Solar Installation Statistics Published by the CWEA
    China Wind Energy Association recently published new wind installation figures for 2016. New installations of wind dropped by 24% to 23 GW, down from 30 GW in 2015. This new installation of wind power brings the total installed capacity to 169 GW. Windy northwest provinces continued to attract the most amount of new capacity additions (26%), followed by the North China (Huabei) region (24%) and East China (Huadong) region (20%). Additionally, total offshore wind power capacity increased by 64%, with over 590 MW of new capacity installed in 2016, bringing the total offshore wind capacity to 1.6 GW. (ESCN)

     


    Source: Azure International, CWEA

    High curtailment in windy provinces is clearly making its mark on new installation patterns. While the resource-rich northwestern provinces still saw the largest share of new capacity additions at 26%, this was down from 2015's whopping 38%. In the face of congested transmission lines and high curtailment, developers are choosing to build closer to load centers, as evidenced by the eastern coastal region of Huadong seeing the largest percent increase in new capacity of any region.



    Plan: Guiding Opinion on Energy Work for 2017 Published by NEA
    According to the NEA's 2017 Guiding Opinion on Energy Work, by the end of 2017 China will install 20 GW of new wind capacity, with another 25 GW under construction. The document also calls for a gradual shift to developing wind in eastern coastal and southern provinces, as well as a short-term stay on building new wind power in provinces that have curtailment rates above 20%. Finally, the document also calls for the acceleration of offshore wind development. (BJX CN)

    As made clear both by the CWEA wind statistics and the NEA's guiding opinions, the major story for wind in 2017 is China's increasing emphasis on developing wind generation sources closer to eastern and southern coastal load centers. This emphasis on developing wind proximal to load centers can be seen both in the increasing emphasis on offshore wind generation as well as the targets set out in the 13th Five Year Plan to shift development away from windy northern provinces to the south and east. 



    Markets: NYSE  Issues Noncompliance Notice to Yingli Solar 
    Yingli Green Energy Holding Company Limited (NYSE: YGE) announced that the company had received notice from the New York Stock Exchange (NYSE) Regulation  on February 9th, 2017. The notice stated that the company was below the continued listing standards of the NYSE, specifically that its average market capitalization over a 30 day period was below $50 million. Following the notice, Yingli has 90 days to present a plan to the NYSE demonstrating how it will regain compliance with NYSE's standards within 18 months. The plan will then be evaluated by the NYSE. If accepted, Yingli will be subject to quarterly reviews of its compliance progress. If the plan is not accepted, Yingli Green Energy will be subject to suspension and delisting procedures from the New York Stock Exchange, although the stock may continue trading in over-the-counter (OTC) markets. (PRNewswire)

    Yingli modules at a 50 MW Datong solar farm

    Source: Yingli Solar

    This notice is not the first time Yingli has come into problems with the NYSE's continued listing standards, as the company faced the threat of delisting in November of 2015 as well, when its shares were trading below the $1 threshold for 20 consecutive days. Furthermore, according to Yingli's latest quarterly earnings report, for the third quarter 2016 Yingli suffered an operating loss of $34 million.