FIRST SOLAR IN CHINA MEGA-PROJECT

First Solar Moves Closer to Delayed China Project
Ucilla Wang, January 5, 2011 (Earth2Tech via Reuters)

"…First Solar’s big plan to eventually build 2 GW of solar power plants in China’s Inner Mongolia has moved ahead. The company signed a memorandum of understanding with China Guangdong Nuclear Solar Energy Development Co…to develop the first phase, 30-MW project.

"First Solar will supply its cadmium-telluride solar panels (and advice) to China Guangdong for the engineering and construction – as well as the operation and maintenance – of the power plant…The company is working on finalizing details of the project and hoping to get approval to start construction in 2011…Completion will then be set for 2012."

click to enlarge

"…First Solar had hoped to start construction by June 2010…[after signing] an MOU for the 2-GW master plan in September 2009…Government approval of key steps of the project [caused the delay]…The Chinese government was supposed to approve solar electricity pricing for the project by the end of 2009, but didn’t. Without guaranteed solar electric rates, or feed-in tariffs, First Solar didn’t want to move ahead…[T]he pricing issue [remains un resolved]…First Solar and China Guangdong will submit a business plan to the government in order to ask for feed-in tariffs…

"…First Solar had hoped to complete phase 2 and 3 of the project, totaling 970 MW, by 2014. It wanted to finish the last phase of 1 GW by 2019…[The project is] the first large-scale solar collaboration between China and the United States…"

Flash Player 9 or higher is required to view the chart
Click here to download Flash Player now

View the full FSLR chart at Wikinvest

"China is a potentially large solar market, but many non-Chinese companies believe they are at a disadvantage if they want to sell their equipment to, or develop projects in, China because the Chinese government is more likely to support goods and services from domestic companies, such as Suntech Power, Trina Solar and Yingli Green Energy…[making] First Solar’s 2-gigawatt plan all the more remarkable. But getting it done, of course, hasn’t happened…

"First Solar is eager to diversify its market reach beyond Europe. Germany has been its largest market, but the country’s solar incentives are declining. First Solar CEO Rob Gillette has talked about exploring markets in India, Africa and the Middle East. Last December, the company said it had signed a deal to sell 15 megawatts of solar panels to ACME Tele Power in India…[It] is developing many projects in North America…Plutonic Power Corp. and GE Energy Financial Services will buy three, yet-to-be-built power plants totaling 50 megawatts…in Ontario, Canada…"