Solar thermal firm in deal with China
eSolar says it has reached a deal with a Chinese equipment maker to build a 2,000 MW solar project
eSolar says it has reached a deal with a Chinese equipment maker to build a 2,000 MW solar project
The deal comes as the Chinese government aims to boost renewable energy
generating capacity in the country, with plans to generate at least
10,000 MW of solar energy and 20,000 MW of wind power by 2020.
In
a statement, eSolar said equipment maker China Shandong Penglai
Electric Power Equipment Manufacturing Co was developing solar thermal
plants using eSolar’s technology.
It did not disclose
financial details of the deal, but analysts said the 2,000 MW project
was the largest of its kind in China and could easily be worth more
than $5bn.
Solar thermal power uses the sun to heat water,
producing steam to power a turbine and create electricity. The
technology is seen by some as a viable replacement for fossil-fuel
generators because such plants can rival the capacities of many
conventional power plants.
eSolar said China Shandong Penglai
was building the project along with a biomass electricity generation
facility within an industrial park in Yulin, Shaanxi province.
China Shandong Penglai would operate the first 92 MW this year, the statement said.
The
Pasadena, California-based company has deals with US utilities,
including NRG Energy Inc to create more than 400 megawatts at solar
thermal power plants in the US Southwest. It recently opened its first
commercial power plant in Lancaster, California.
eSolar’s investors include technology incubator Idealab and Oak Investment Partners.
