Solar products maker Yingli Green Energy Holding Co has announced an agreement that they have made with a local Beijing government body to construct a 10MW photovoltaic power plant. The construction is planned to begin in the second half of 2009.

A new company is going to be created, under the framework of the agreement, in order to construct the power plant.

Government approvals must still be granted and there are still further negotiations to carry out before project planning and connection to the electricty transmission grid is done.

“We are excited about this opportunity to construct an on-grid solar power plant in Beijing, which would be the first solar power plant we construct and operate,” said Liansheng Miao, chairman and CEO of Yingli.

“We believe our participation in this project is in line with our strategy of expanding into downstream applications of PV technology and will further strengthen our vertical integration business model,” said Miao.