First Solar To Build 2-Gigawatt Solar Power Plant in China

[pkd]

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First Solar To Build 2-Gigawatt Solar Power Plant in China

By Keith Johnson

Solar-panel maker First Solar is cracking open the Chinese market, which could become one of the world’s most promising for solar power.

Arizona-based First Solar said today it signed a deal with Chinese officials to build a 2,000 megawatt solar-power plant in Inner Mongolia over the next decade at an estimated cost of $5 billion to $6 billion.

UPDATE: That figure is apparently what it would cost to build a similar plant in the U.S. today; building a large plant in China in the future would likely cost less, due to labor costs especially, say First Solar spokesmen.

For First Solar, which already has contracts to build smaller, though still utility-size, solar-power plants in the U.S., the Chinese deal could be a game-changer. “If you have two gigawatts, it could change the image of solar power from niche to nuclear-plant-size installations,” said First Solar chief executive Mike Ahearn in an interview.

The deal also shows, First Solar says, that China isn’t necessarily slamming the door on foreign competition in the clean-energy space. “I think they clearly want to be working with advanced technology and they’re looking for low-cost solutions,” Mr. Ahearn added.

That said, First Solar will probably end up building local manufacturing capacity to feed the big plant, part of a larger, planned Chinese renewable-energy park in the city of Ordos.

“I think there’s a clear expectation that we will build production capacity in China,” Mr. Ahearn said. The company plans to start with a 30-megawatt installation before ramping up installation to build the entire power plant by 2019.

Just as in the U.S., though, First Solar needs a couple of assists from the government to make the project a reality: subsidies and power lines.

First Solar’s deal with Ordos City is contingent on plans by the Chinese government to create a solar-power subsidy program, for example in the form of above-market tariffs that utilities would pay for solar power. Mr. Ahearn said he and others expect that the Chinese solar tariffs will be between 15 and 25 cents a kilowatt-hour. That’s fairly low compared to solar tariffs in other countries like Germany and Spain, but would probably be enough to make the solar power plant competitive with traditional sources of electricity.

Another concern is electricity transmission, the lack of which has dogged China’s development of wind power. Mr. Ahearn said Chinese officials are studying how to augment the region’s transmission infrastructure and its ability to handle intermittent power sources, such as electricity from solar panels.

“To do two gigawatts, that’s going to require some substantial infrastructure investments,” Mr. Ahearn said.

If it goes ahead as planned, the Chinese project could help First Solar cut the costs of solar power even further, Mr. Ahearn said, because large deals like the Ordos City contract and government programs that set targets and reasonable prices for solar-power installations will provide the scale and “visibility” that solar companies need to cut costs and prices, he said

[blueoval79]

^^^^6
Excellent news....This looks like a step in the right direction to harness Green energy.....Great work China..:China:

[proud_indian]

excellent step

green energy is the only way to fight against global warming

kudos to them

[pmukherjee]

First Solar To Build 2-Gigawatt Solar Power Plant in China

Excellent news. We have to develop renewable energy sources, we have no option. The earlier we do that the better. Full marks to China there. India also has plans to India to invest $19 billion to produce 20 GW of solar power by 2020.

[muse]

Why can't Pakistan and India do the same?? People and industry in both countries suffer - and the technology cannot be insurmountable for countries that have shown what they can do when they put their national resources to solve a particular problem.

Imagine some sort of a joint venture, a commercial enterprise - win, win, win

[blueoval79]

Why can't Pakistan and India do the same?? People and industry in both countries suffer - and the technology cannot be insurmountable for countries that have shown what they can do when they put their national resources to solve a particular problem.

Imagine some sort of a joint venture, a commercial enterprise - win, win, win

Bhai,
I am not sure about Pakistan But India is investing Big time in Solar and other Renewable energy power generation technologies........

Solar: Solar Energy in India ? Gujarat to host World?s Largest Plant, India?s grand plans..and more |Technology

http://timesofindia.indiatimes.com/n...ow/4983715.cms


Wind Power: Wind Power Capacity May Exceed India?s Estimate by Fivefold - Bloomberg.com

[muse]

Wow - I'm impressed - particularly by the openness to international companies to create solutions - the 55% govt stake is a bold statement of commitment.

[TruthSeeker]

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This is also great for the US company FirstSolar. It will allow them to build a demonstration project and to further develop manufacturing technology to reduce costs. It is good to see China using some of its excess $$ to advance an important technology that will benefit everyone in the world, if successful. Still, solar energy generation needs some good energy storage mechanism to go with it, which has not yet been found. Otherwise, a plant such as this may only power nearby energy intensive industries, and only when the sun shines .....