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1,100 MW Solar PV Project Now Under Construction In China

Originally published on RenewEconomy.
By Sophie Vorrath.

The development of a huge 1.1GW solar power plant project in China’s Gansu Province has begun, with China-based solar manufacturer and developer, China Singyes Solar Technologies Holdings, announcing the commencement of the 300MW ‘first phase’ in Hongshagang Industrial Park in Minqin County, Wuwei.

Image Credit: China Solar Cells via Wikimedia Commons

Development of the 1.1GW PV plant was announced by Singyes in December last year, as part of a broader deal with the Minqin County government to establish an environmental industry and clean energy development zone, including a solar R&D base.

This 300MW first phase of the solar power plant is expected to be completed by the end of 2014, and have an average annual power generating output of 480 million kWh. The overall project has a planned construction period of five years.

Singyes, which is listed on Hong Kong’s Hang Seng Index, has been enjoying a good run, lately – last week bucking a broader market slump to hit a record high at $HK12.58 during the Friday session.

According to the Wall Street Journal, Goldman Sachs added the stock to its “conviction buy” list last week, describing the solar-power products maker as “well-positioned” to benefit from growing demand for its products in mainland China.

Much of Sinyes’ positive growth in sales and revenue has come from its building-integrated photovoltaics (BIPV) unit, which makes building materials with solar power functions. In 2013, BIPV accounted for nearly half of the company’s revenue, compared with 40 per cent in 2012.

Singyes CFO, Jimmy Yu, said in August last year that he hoped BIPV would account for an even greater share of future sales because the gross profit margin of the product remained high at 32 per cent. The company also recorded growth in its renewable energy, new materials and curtain walls businesses.

In a media release last week about the Minqin County project, the company said the solar R&D base would focus mainly on local agricultural produce needs and on power supply to local areas with no ready access to electricity. It wouls also include the production of solar heating baking room and the R&D of smart micro grid systems.

“We hope that, by participating in solar project in Minqin County, Wuwei, Gansu Province, we can optimise the local energy structure, protect the ecological environment, as well as promoting the use of solar energy, and advancing the development of the PV industry,” said Liu Hongwei, chairman of Singyes Solar.

“We will make use of the Wuwei solar product R&D base and take advantage of local conditions to explore a new PV industry that incorporates PV power generation, desert management, and modern agriculture as well as the new approach of industrialised desertification control.”

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