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Yingli To Be Sole Photovoltaic Cell Supplier To AES Solar

Yingli Green Energy Holding Co. (YGE) entered a three-year agreement with AES Solar to be the exclusive supplier of a type of photovoltaic cells to the solar power company.The news recently sent American Depositary Shares of Yingli up 8.4% to $8.76 in premarket trading. AES Corp. (AES), a parent of AES Solar, closed Thursday at $9.15 a share and was inactive premarket.Many solar panel makers have seen sales plummet amid tighter credit conditions, and an oversupply of panels has led to lower prices. Yingli has focused on raising capital in recent months, in part to expand its production capacity. The company had lowered its margin target in March, citing a drop in the average selling price of photovoltaic modules.

Yingli said it will be the sole supplier of photocrystalline photovoltaic modules, which it expects AES Solar to buy for use in projects in some of its major solar markets. AES Solar is the $1 billion joint venture of independent power producer AES Corp. and energy buyout investor Riverstone Holdings LLC. AES Solar has 24 megawatts in operation in Spain and activity in other countries.