Suntech just announced that it has entered into agreements with several Chinese provincial and city governments for solar projects.
The agreements are as follows: 300 MW for the Shaanxi provincial government, 500 MW for the Shizuishan city government in Ningxia province, 500 MW for Qinghai provincial government, and 500 MW for Panzhihua city government in Sichuan province, for a grand total of 1.8GW. The agreements are contingent on several conditions. Suntech will need to get relevant government permits, create the designs and secure the financing.
In a press release, Dr. Zhengrong Shi, Suntech’s Chairman and CEO, commented on the agreement:
“These strategic agreements demonstrate the commitment of governments of Shaanxi, Shizuishan, Qinghai and Panzhihua to adopt utility scale solar energy to power sustainable development. Plentiful solar resources combined with Suntech’s premium quality solar systems can deliver decades of clean, renewable electricity throughout many regions in China. With ongoing investment in technology and innovation, Suntech is determined to continue to drive the cost to grid parity and encourage greater adoption of solar throughout China.”
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Suntech expanded their capacity too qucikly in the past few years. The long term material contracts that Suntech signed in the past two years made suntech in a big trobule now. According to PVinsights, http://www.pvinsights.com, polysilicon spot price have been dropped over 80% in the past three quarters. solar cell and solar module prices have been reduced over 50%. The big component price drops make solar module maker and solar cell makers in a big trobule siutaction now.