“YieldCo,” the most popular keyword to today’s renewable energy industry, is now gathering attention in Taiwan. The board of directors of Neo Solar Power Corp. (NSP) decided to launch solar system business and plans to establish Taiwan’s first “YieldCo” company. The YieldCo company could be listed on Hong Kong Stock Exchange (HKEx) by the end of 2015 or early 2016.
YieldCo is a publicly traded company that regards solar power plants as an operating asset that produce predictable cash flow. When being listed, the power plants would generate electricity, sell power, and earn money for sharing with investors as well as for running the company. NSP announced to invest US$ 50 million in establishing a new YieldCo company in cooperate with its subsidiary, General Energy Solutions (GES), and an international solar project developer. The YieldCo company will be listed on HKEx when successfully funded.
Through the YieldCo company’s public listing, NSP would not only be able to raise predictable money , but also create steady income to develop international PV projects. In other words, the YieldCo could help NSP build more export markets for its high efficiency PV cells and modules. GES will also be benefited by capital raised from the YieldCo company so that the PV system developer could launch more PV power plant projects around the world.