First Solar Moves Forward With 2 GW China Project

First Solar Inc. has signed an agreement with the Chinese government that takes another step toward the realization of the world's largest solar power plant — part of a planned 11.95 GW New Energy Industry Demonstration Zone, which is expected to combine solar, wind, hydroelectric and biomass power sources.

Staff -- PV Society, 11/17/2009

First Solar Inc. (Tempe, Ariz.) announced today that a cooperation framework agreement has been signed with the Chinese government that takes another step toward the realization of the world's largest solar power plant. The project is part of a planned 11.95 GW New Energy Industry Demonstration Zone in Ordos City, Inner Mongolia, which is expected to combine solar, wind, hydroelectric and biomass power sources to provide a steady supply of renewable energy to the region that includes China's capital.

First Solar President Bruce Sohn and Mayor Yun Guangzhong of the Ordos City Government signed the agreement in the presence of Chinese Vice Premier Li Keqiang, Vice Minister Liu Qi of the National Energy Administration, and U.S. Secretary of Energy Steven Chu. The signing ceremony took place as part of the U.S.-China Summit, where U.S. President Barack Obama and Chinese President Hu Jintao met to discuss upcoming global climate change negotiations and clean energy, among other topics. "President Obama's trip to Beijing is a significant step forward in further solidifying bilateral relations with China," said Rob Gillette, First Solar CEO. "First Solar is enthusiastic in contributing to the commercial relations of our two countries through this cooperative framework agreement."

The agreement spells out project details and local support that advance the development of the 2 GW solar power plant that First Solar announced in September. Following up on the memorandum of understanding (MOU) announced at the time, the latest agreement also confirms June 1, 2010, as the expected construction start date for the 30 MW Phase 1. Phases 2, 3 — 100 and 870 MW, respectively — are scheduled for completion by 2014; and the 1 GW Phase 4 is to be completed by 2019.

"This cooperation framework agreement and its recognition by the National Energy Administration mark a critical step forward in the approval process for the Ordos project, one of the world's most ambitious renewable energy projects," Gillette said. "It reinforces the commitment of First Solar, the Chinese government and the Ordos local government to make an immediate contribution to the development of a healthy solar industry in China and to the reduction of greenhouse gas emissions."

The Ordos region already has an existing grid. (Source: First Solar)

"Solar energy will play a significant role in achieving China's low carbon future," Guangzhong said. "We are very pleased to be partnering with one of the solar industry's global leaders in a project of such significance."

The latest document sets forth the agreement in principle of the parties concerning the project and related activities. First Solar and Ordos also agreed to establish two committees to ensure the successful execution of the project and to develop a new energy industry in Ordos.