Solar Focus: China invests in biggest solar project, private sector struggles

Posted by Anne-Marije
Sources: http://weblog.greenpeace.org/makingwaves/archives/2009/09/solar_focus_china_invests_in_b.html#more

This is part of a series of short news updates beyond Greenpeace-specific news. World environmental events in a blurb:

While China invests in the world’s biggest solar project, the recession could cut the solar industry in half by 2010.

The Information Network, a market research firm, announced that 50 per cent of solar panel manufacturers might not survive next year. While the cost of solar panels is going down, making solar panels more accessible for the private sector, the economic recession is making business tough for the manufacturers. (Could we be looking at a solar energy oligopoly in the near future?)

Meanwhile, First Solar Inc., a U.S.-based renewable energy company, just announced it will build the world’s largest solar power plant in China as the country plans to increase non- polluting electricity generation.

Competing with the German Desertec project (which would provide 15 per cent of Europe’s energy) to be the biggest solar project, the Chinese plant will be 30 times larger than existing solar power stations operating in Europe. The 2,000-megawatt complex will be built in the Inner Mongolian desert by 2019. Only 1 megawatt is enough to power 800 homes.

China may increase its capacity to generate electricity from sunlight more than 13-fold by 2011, said Cui Rongqiang, head of the Shanghai Solar Energy Society. The country’s solar-power capacity may rise to 2,000 megawatts by 2011 and 20,000 megawatts by 2020, from 150 megawatts in 2008.

“There are a few existing solar projects of about 50 to 60 megawatts, but this would be the biggest by a country mile,” said Charles Yonts, an analyst specializing in alternative energy.

China, the world’s biggest polluter, burns coal to produce 80 per cent of its electricity. Taking steps towards a greener future, China wants at least 15 per cent of the nation’s energy to come from renewable sources by 2020.

And how much is this going to cost China?

The National Development and Reform Commission, China’s economic planning agency, says China plans to invest $293 billion in its alternative-energy industry through 2020.

And with these plans, China may pass Europe, Japan and the U.S. in becoming the world’s largest user of renewable energy by 2010…let the competition begin!