Big solar power plant planned for northwest China
Two companies in China announced yesterday that they plan to build a huge solar power plant in the northwest, that could be the world's largest photovoltaic project.
China Technology Development Group Corp will begin the build on the 30 megawatt solar power station in the Qaidam Basin area of China with a beginning investment of $150 million. The project will combine thin-film and silicon-based technology that will turn sun into electricity, and will produce 1 gigawatt of power.
"The initial phase of the project is ... itself one of the largest solar farms ever announced in China," Molchanov wrote in a client note, adding that the Chinese government is beginning to offer more incentives for solar power projects.
"While PV demand has been historically driven by a small number of key countries, the demand profile should become more geographically diverse over time," Molchanov added.
The news was a welcome reprieve for investors in solar power companies, which have been hard hit by a lack of funding for new projects, a drop in prices on solar panels as supplies have jumped and a dramatic drop in oil prices that has tempered investor appetite for renewable energy.