JA Solar Expects Completion of Half of Planned Plants in August

Jul 23, 2014 12:00 pm ET

July 24 (Bloomberg) -- JA Solar Holdings Co., the world’s third-biggest solar-panel maker, is due to complete work on a 100-megawatt solar farm in China’s Gansu province in the northwest and connect it to the grid next month.

This is a half of the solar power plants JA had planned to build this year, President Xie Jian said yesterday in a phone interview. The company will start construction of another 100- megawatt plant in August in the Hebei province in the north.

“Everything is on track,” Xie said. JA Solar will “later transfer solar power plants or cooperate with others on construction.”

China’s solar-panel manufacturers are investing more in developing their own power projects to boost revenue. The top five producers, led by Yingli Green Energy Holding Co., are planning at least 4.6 gigawatts of projects this year. That’s almost quadruple the capacity they completed last year, according to data compiled by Bloomberg.

Shanghai-based JA Solar is targeting about 20 percent of its sales from project development this year, generating an internal rate of return of 8 percent to 10 percent with loans, Xie said in January.

The manufacturer has raised its annual panel production capacity to 2.8 gigawatts from 1.8 gigawatts at the end of last year, Xie said yesterday. He reiterated JA Solar’s full year cell and module shipment forecast of between 2.7 and 2.9 gigawatts, including the 200 megawatts shipments to its own projects.