First Solar, China Sign Deal For Huge Solar Farm
American solar developer, First Solar, inked a pact with Chinese government officials to build a 2 gigawatt photovoltaic farm to go up in the Mongolian desert.
This First Solar project represents the world’s largest photovoltaic power plant project to date, and it is part of an 11.9 gigawatt renewable-energy park planned for Ordos City in Inner Mongolia. This farm should be ready to go in 2019.
The deal could open the market in China and follows the Chinese government’s wishes to accelerate development of renewable energy. First Solar is the world’s largest photovoltaic cell manufacturer,
When completed, the Ordos solar farm would generate enough electricity to power about 3 million Chinese homes, according to First Solar.
Tempe, Ariz.-based First Solar will also likely to build a factory in China to make thin-film solar panels, said Mike Ahearn, the company’s chief executive. “It represents an encouraging step forward toward the mass-scale deployment of solar power worldwide to help mitigate climate change concerns.”
Most proposed large-scale solar projects use solar thermal technology, which deploys mirrors to heat a liquid to create steam that drives an electricity-generating turbine. But as photovoltaic technology becomes more cost-competitive, utilities are turning to companies like First Solar for big solar power farms.
First Solar said the 2 gigawatt power plant would cost $5 billion to $6 billion if built in the U.S. today, but it said the cost to build such a project in China would probably be lower.
“Discussions with First Solar about building a factory in China demonstrate to investors in China that they can confidently invest in the most advanced technologies available,” said Cao Zhichen, vice mayor of Ordos Municipal Government.
First Solar’s cadmium telluride solar cells are less efficient at converting sunlight into electricity than standard crystalline silicon cells made by other companies. But the catch is First Solar can manufacture them at a significantly lower cost.
Plans for the Ordos renewable energy park call for wind farms to generate 6.9 gigawatts, photovoltaic power plants to provide 3.9 gigawatts, and solar thermal farms to supply 720 megawatts. Biomass operations, fueled by organic materials like wood chips and straw, will contribute 310 megawatts; 70 megawatts will be available from hydro storage, a load-balancing technology that uses off-peak power to pump water to a high reservoir from which it can release to turn turbines at peak demand periods.
First Solar will have to establish a supply chain to provide power inverters and other hardware needed for its part of the project as well as train Chinese contractors how to build and operate solar farms. Another hurdle is China must upgrade its transmission system to connect the solar power plant to the grid.
