China to build the world's biggest solar power plant
Filed under: Energy, First Solar
Inner Mongolia is a backwater region of China, but it's about to become a world-class location for solar power. On September 8, leading solar panel maker and solar power plant integrator First Solar (FSLR) signed a multi-billion dollar agreement with the Chinese government to build a two gigawatt solar plant on the windy steppes of Inner Mongolia, far from the bright lights of Beijing and Shanghai, according to the Cleantech Group. To put this in perspective, three years ago China was also building the largest solar power plant in the world, according to Red Herring. But it was only 100 megawatts -- one-twentieth the size of this one. The First Solar plant, to be completed by 2019, will dwarf all other solar plants, both existing and planned. The agreement comes after vocal criticisms by U.S. and European green energy companies that they were being intentionally shut out of bidding processes for large projects by the Chinese government.
A number of major foreign clean energy players have built factories in China to comply with laws mandating that a high percentage of components and the final product itself be built in the Middle Kingdom, the New York Times reports. The First Solar installation at Ordos could mark a turning point, or it could be a one-time aberration. China's own energy companies need to have access to foreign markets to grow and China is heavily subsidizing its cleantech sector. This has caused a huge plunge in solar panel prices that is impacting non-Chinese companies more due to the refusal by Western governments to subsidize the production side of the solar boom.
That said, the agreement does follow a familiar pattern of a large Western company signing a deal with the Chinese government and agreeing to share its technology. In many past deals like this, the Western companies have ended up competing against Chinese companies using similar or allegedly identical technology. First Solar is a leader in so-called thin-film solar panel technology. Thin-film panels are cheaper to make and lighter than standard photovoltaic panels. While several Chinese companies make thin-film panels, none are considered to have technology on par with that of First Solar.
Motives aside, the size and ambition of the plant is emblematic of the new China. The Chinese government is aggressively pursuing green power as a means of furthering the country's goals towards both a cleaner environment and energy independence.
Inner Mongolia is home to a number of energy-intensive heavy industries such as steel production and aluminum smelting. So the need for cheap, reliable and fixed-cost power in this region is even more acute for many Chinese resource companies that cut back production when commodity prices fell in the past year.
Of course, enormous government subsidies for solar power plants is another big reason why the biggest plants are showing up over there and not in the U.S. or Europe. According to Cleantech, the Chinese government will subsidize as much as 70 percent of solar projects that produce more than 50 megawatts of juice. With this kind of incentive to build, China is well on its way to becoming the biggest producer of solar power on the planet, surpassing the cash-strapped developed world in a headlong race for green energy superiority. First Solar, one of the few solar panel makers to have prospered in the current glutted market, is apparently going along for the ride.
Alex Salkever is a senior writer at AOL Daily Finance. He can be reached at alex@dailyfinance.com.
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Reader Comments (Page 1 of 1)
9-09-2009 @ 9:45AM
dajt57 said...
we need solar. solar panels on roofs can eliminate coal burning plants. lets get building.
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9-09-2009 @ 10:12AM
Coach said...
Put up solar panels everywhere, reflect all the sunlight back into outer space, and we will experience the next ice age. The earth is already into a cooling trend in spite of all the clamor about the "global warming" farce.
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9-09-2009 @ 10:46AM
Shaps said...
This is fantastic news, a real step towards the growing Global Warming issue. Google cover it pretty well.
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9-09-2009 @ 10:33AM
Gaurav said...
Solar panel do not reflect heat back into space, duece.
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9-09-2009 @ 10:38AM
steve said...
And once again we Americans are going to fall behind the world . as our BIG GOVERNMENT fs around with all of the B/S hey Obama where are the green jobs!!!
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9-09-2009 @ 10:48AM
David said...
The only "green" job Obama created was his green jobs czar.
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9-09-2009 @ 11:16AM
John Hoover said...
China actually has long term policy planning and is not hampered by a political system in which the status quo will do anything not to change their business models. In the United States large economic entities do not want change and will buy Congressmen, Senators and even both political parties rather than give up market share to new green energy efficent paradigms. Let us all pray that Obama's new energy inititives start us on the road to a sustainable future.
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9-09-2009 @ 11:23AM
dan said...
China again leading the way while our leaders bailout the Wall Street fat cats that destroyed America.
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9-09-2009 @ 11:35AM
TEVA said...
Solar is great but when it comes to the United States
we seem to have our hands tied behind our backs.
You can't build a fence without the EPA signing off on it first. How do ever excepted to be able to build solar farms?
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9-09-2009 @ 11:37AM
Lisa said...
the article is incorrect, from the perspective that this is the largest installation planned. There are plans for a 3 - 4 gigawatt installation in Arizona, outside of Snowflake, co-locating wind and solar. The problem is that wet cooled concentrating solar is planned, using billions of gallons a year of ground water. This is because it's still the cheapest way of producing electricity from the sun. It is very short sighted, using the precious water resource. It also requires tall towers with FAA lighting and mass grading of the desert environment, which is very disruptive of those living close by.
If everything planned in the US is based solely on profit and bottom line, nothing will ever be planned with compassion and sustainability for people, environment and our precious water resource.
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9-09-2009 @ 11:42AM
timothy said...
Now what...will China teach us how to create 'green' jobs...like building solar power plants. ?? Heard automobile sales in China during August passed sales in the US for the first month ever. Can u see the future ?????
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9-09-2009 @ 11:53AM
Nancy said...
I think we should employ the Chinese to help us build one of their fabulous 'China Walls' so we can keep the illegals out!!!!
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9-09-2009 @ 12:37PM
Rocky said...
Could have done that here in US but can not because all the monies to build this in China came from those who continually buy their products instead of American and now we are in debt. Keep on supportin them as we become a third world country.
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9-09-2009 @ 12:37PM
American in the dark said...
If China can build a solar field 25 sq. miles, why aren't we building one 100 sq. miles, or 2, 50 sq. miles or 4, 25 sq. miles, etc? It was mentioned that one this size would take care of all of our energy needs. Who's stopping us? The lobbyists in Congress, buying off your local Congress person? This is why China is leaving us in the dust lately, Congress must ask permission from the Lobbyist before they can decide on any issue. Ask your Congress person if they are taking money from the AMA, Oil, Insurance Co.'s. This is why nothing is getting done.
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9-09-2009 @ 12:45PM
Jilly-Bo said...
Time was when China could not do anything highly technical and we provided the "know how". That era is history. Good ole American "know how" is largely sidelined everywhere. The Chinese know how and are forging ahead beating us on all fronts including capitalism and finance while we wallow in a get-rich-quick morass of our own making. Maybe when they perfect solar, we can buy it if our currency holds out long enough.
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9-09-2009 @ 1:24PM
jd said...
Let's see China invests in China, the US invests in foreign war. China builds infastructure, the US invests in planes, guns, ammunition, and smart bombs. Since Viet Nam, (36 years ago) China has been in zero wars. Since Viet Nam the US military has been involved in, Iraq twice totaling 7+ years, Afghanistan 7 years, Somalia, Kosovo, Grenada, and bombed Lybia. China has zero military installations around the globe, the US has hundreds. China buys interest bearing debt, the US sells its debt and pays huge interest on it. China makes things, the US buys things. China's economy is growing, the US economy is shrinking. Maybe investing in your own country is good policy....ya think?
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9-09-2009 @ 1:42PM
ssgoodluck said...
Maybe we can borrow some money from China to build our own solar powered generation station. We can print money to pay back our loans with worthless paper money. Dual charging stations for cars and money hauling wheelbarrows. Hybrid solar panel/battery operated wheelbarrows available only for customers paying in gold ingots.
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9-09-2009 @ 4:15PM
Ed Kirkland said...
Great article Alex, but you left out one VERY important tidbit. Next time do some research instead of just rewording other writers articles.
While First Solar may be an American Company, all of their panel production is resourced out. Resourced out to the CHINESE. Not that makes for interesting press.
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9-10-2009 @ 10:28PM
WilliamN said...
Waaa the end is near huhuhuhu but hey it always pay to look at the bright side wakekekekeke. There's no doubt that building solar panels will be the mainstream in short time as grid cost gets higher and higher. As technology advances, production of solar power materials are more competitive than ever.
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