JA Solar Holdings Co., a Chinese maker of solar-power components, will buy 10 gigawatts of polycrystalline wafers and polysilicon products from GCL-Poly Energy Holdings Ltd.
GCL-Poly, China’s largest polysilicon producer, will supply the components from next January to December 2015 at a pre-determined shipment volume, JA Solar said in a filing.
The order size represents about half of next year’s predicted global demand of 18.6 to 24.5 gigawatts, according to Bloomberg New Energy Finance analysis.
The contract with Hong Kong-based GCL-Poly has a price-adjustment mechanism, JA Solar said. The tie-up “just makes sense” according to Jenny Chase, a solar industry analyst at New Energy Finance in Zurich. “Especially as neither is risking paying or receiving prices too far from spot market prices by doing so.”
Wafers made of silicon are used to produce solar cells, which are assembled together to make modules for producing electricity from sunlight.