Hong Kong-based Hanergy Thin Film Power Group Ltd says that its subsidiary Beijing Jing Cheng is investing in the construction of a 300MW flexible copper indium gallium diselenide (CIGS) thin-film photovoltaic (PV) module production line in the Economic Development Zone of Changde City, Hunan Province, China, to be completed by June 2016.
Following a supplemental agreement of 8 December between Beijing Jing Cheng, the Government of Changde City, and the Council of Changde Economic and Technological Development Area (ETD Council), the Changde Government will be responsible for constructing the PV production factories and relevant ancillary engineering facilities, and lease the land use rights and factories to Beijing Jing Cheng at a concessionary rate (payable on a semi-annual basis). The Changde Government and Beijing Jing Cheng will separately enter into formal project agreements for construction, management, leasing and buyback of the factories.
Specifically, Beijing Jing Cheng will buy back the project (at its original total construction cost) by 31 December of the sixth year after the date on which the project obtained its industrial and commercial business license.
In recent years, Beijing-based clean-energy power generating firm Hanergy Holding Group Ltd (parent of thin-film photovoltaic module maker Hanergy Solar) has been developing downstream solar power business sectors, and is developing photovoltaics power generation projects and application businesses both in China and worldwide. In the last few years, Hanergy Solar has acquired three CIGS PV firms: Germany’s Solibro GmbH (from Q.Cells SE) and US firms MiaSolé Inc of Santa Clara, CA and Global Solar Energy Inc (GSE) of Tucson, AZ.
Hanergy says that the new project represents a milestone in its capability to produce its own thin-film PV modules. With financial support from the Changde Government and the ETD Council, Hanergy says that the new CIGS thin-film product line will help to complete its industry chain, and that the synergy between the businesses should enhance its competitiveness.
Hanergy believes that producing its own thin-film PV modules will not only help it to diversify its revenue and customer base but also open up the whole industry chain, reducing overall cost. It also believes that strategic synergy can be realised by exercising effective management and monitoring in different areas such as the R&D, production and application of thin-film technology.
