Big solar plant planned for northwest China
The news helped spur a rally in shares of solar power companies that was also underpinned by higher oil prices and a strong rise the broader market.
China Technology Development Group Corp and privately held Qinghai New Energy Group will begin building a 30 megawatt solar power station in China's Qaidam Basin this year with an initial investment of $150 million, they said in a joint statement.
The project, which will combine thin-film and traditional silicon-based technologies that turn the sun's rays into electricity, ultimately will produce 1 gigawatt of power, the companies said, without giving a timeframe.
According to Raymond James analyst Pavel Molchanov, the largest photovoltaic solar project announced to date is the 550 MW deal between closely held thin-film company OptiSolar and California utility PG&E Corp.
"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.
Related News

External investigators looking into alleged assaults by Manitoba Hydro workers
WINNIPEG - Manitoba RCMP have called in outside investigators to probe alleged assaults linked to hydro projects in the province’s north during the 1960s.
RCMP say any historical criminal investigations involving Manitoba Hydro employees or contractors will be handled by the Ontario Provincial Police.
The Independent Investigation Unit of Manitoba, the province’s police watchdog, will investigate any allegations involving RCMP officers.
A report released last month by an arm’s-length review agency outlined racism, discrimination and sexual abuse at the Crown-owned utility’s work sites dating back decades.
Much of the development at that time was centered around the community of Gillam and the nearby Fox…