First Solar to Team With Ordos City on Major Solar Power Plant in China Desert
First Solar recently announced a memorandum of understanding (MOU) with the Chinese
government to build a 2 gigawatt solar power plant in Ordos City, Inner
Pursuant to the MOU, signed in the presence of Chairman Wu Bangguo of the
Standing Committee of the National People's Congress of China, the solar project
in Ordos will be built over a multi-year period. Phase 1 will be a 30 megawatt
demonstration project that will begin construction by June 1, 2010 and be
completed as soon thereafter as practicable. Phases 2, 3 and 4 will be 100
megawatts, 870 megawatts, and 1,000 megawatts. Phases 2 and 3 will be completed
in 2014 and Phase 4 will be completed by 2019.
"This major commitment to solar power is a direct result of the progressive
energy policies being adopted in China to create a sustainable, long-term market
for solar and a low carbon future for China," First Solar
CEO Mike Ahearn said
at the signing ceremony. "We`re proud to be announcing this precedent-setting
project today. It represents an encouraging step forward toward the mass-scale
deployment of solar power worldwide to help mitigate climate change concerns."
The project will operate under a feed-in-tariff which will guarantee the pricing
of electricity produced by the power plant over a long-term period.
"The Chinese feed-in tariff will be critical to this project," Ahearn said.
"This type of forward-looking government policy is necessary to create a strong
solar market and facilitate the construction of a project of this size, which in
turn continues to drive the cost of solar electricity closer to 'grid parity' -
where it is competitive with traditional energy sources."
The MOU contemplates that during the implementation of the initial phases of the
project First Solar will actively review the possibility of module and supplier
manufacturing sites in Ordos
, and other considerations required to support a
First Solar investment. First Solar also intends to facilitate expansion of the
supply chains in China for thin film photovoltaic module production and for the
recycling of photovoltaic modules after use.
"We are very pleased to be partnering with one of the solar industry`s global
technology leaders in a project of such significance to Ordos`s low carbon
future," said Cao Zhichen, vice mayor of Ordos Municipal Government.
"Discussions with First Solar about building a factory in China demonstrate to
investors in China that they can confidently invest in the most advanced
The MOU sets forth the agreement in principle of the parties concerning the
project and related activities. Final agreement between the parties is subject
to the negotiation and execution of definitive agreements among the parties.
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