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China Solar Projects Draw Interest From 50 Companies (Update2)
2010-08-12 10:52:03.776 GMT
(Adds premium power price in sixth paragraph.)
By Bloomberg News
Aug. 12 (Bloomberg New Energy Finance) -- China's effort to
double its capacity to produce solar power has attracted project
bids by 50 companies, ranging from nuclear plant operators to
circuit-breaker makers, one of the participants said.
The tender process has generated 135 offers to build and
run solar plants in six provinces, including from China
Guangdong Nuclear Power Group Co., the nation's second-biggest
atomic plant builder, according to Qiu Zhanwei, vice-director of
Beijing-based solar-module maker Astronergy, which also has bid.
"A lot of companies are interested in getting involved in
these projects as the government is keen to develop this sector
and they want to get an early piece of the action," said Dennis
Lam, an analyst at DBS Vickers Hong Kong Ltd.
China is offering subsidies, loans, tax breaks and premium
rates to spur renewable energy. The world's biggest air polluter
is seeking to boost its installed capacity of sunlight-driven
generation by more than 60-fold to 20,000 megawatts by 2020 to
cut its reliance on fossil fuels, which produce more emissions.
About 80 percent of the nation's power plants run on coal.
China is using a bidding system to grant concessions to
build and run solar-energy plants after using that model for the
first time ever last year. The scale of the 13 concession
projects, which have 280 megawatts of total capacity, almost
equals the nation's cumulative installed solar capacity at the
end of 2009, according to Bloomberg New Energy Finance data.
Premium Prices
National and regional governments are experimenting with
incentives to spur solar construction. Shandong province said
last month it would buy power from photovoltaic generators at
1.7 yuan (25 cents) a kilowatt-hour, more than four times what
coal-fired power plants are paid.
"It's not clear yet what kind of returns companies will
get as electricity tariffs for the projects are not set, but
with the government support the indications are that tariffs
will be higher, DBS Vickers' Lam said."
Astronergy, the solar module-making unit of China's Chint
Group, has bid to develop five solar projects, Qui said. They
include the 20-megawatt Wuwei plant in Gansu province and the
20-megawatt Hami plant in Xinjiang Uyghur Autonomous Region.
The others are the 20-megawatt Bayannaoer project in Inner
Mongolia and two separate 30-megawatt photovoltaic plants in
Qingtongxia, Ningxia Hui Autonomous Region, and Gonghe, Qinghai
province, Qiu said by telephone from Beijing yesterday.
Qiu didn't disclose the price range of Astronergy's bid.
The Zhejiang-based solar company won't win the projects by low
tender prices, which may weaken the development of the industry,
Qiu said. Astronergy may use crystalline silicon or thin-film
modules, or a combination of both for the projects, he added.
Biggest Bidders
China started the bidding process for the photovoltaic
concession projects in June. The offers are expected to be
opened next week, Qiu said.
The bulk of the bids came from state-owned project
developers China Guangdong Nuclear, China Energy Conservation
and Environmental Protection Group and other major firms,
including China Huaneng Group, that are likely to buy material
and equipment from suppliers, Qiu said. In contrast, Astronergy
aims to use its own photovoltaic modules, he said.
China Guangdong Nuclear Solar Energy Co., the solar
subsidiary of China Guangdong Nuclear, participated in the
bidding for all the 13 concession projects, Qiu said. Telephone
calls to the parent company's media relations office in Shenzhen
city went unanswered.
Canadian Solar Inc., a China-based solar-module maker and
project developer, has bid for the 20-megawatt Jinchang project
in Gansu, according to Qiu. Alex Taylor, the company's Jiangsu-
based spokesman, didn't answer phone calls to his office.
Suntech Power Holdings Co., China's largest solar-module
maker, has placed a joint bid with Huaneng Xinjiang Energy
Development Co., a unit of China Huaneng Group, for the 20-
megawatt Hetian project in Xinjiang, Zhang Jianmin, media
relations manager at Suntech, said by telephone.
For Related News and Information:
Most-read alternative energy stories: MNI ALTNRG <GO>
Top renewable energy, environment page: GREEN <GO>
New Energy Finance top news: TNEF <GO>
--Feifei Shen in Beijing and John Duce in Hong Kong, with
assistance from Ryan Woo in Singapore. Editors: Todd White,
Baldave Singh
To contact Bloomberg News staff for this story:
Feifei Shen in Beijing at +86-10-6649-7527 or
Fshen11@bloomberg.net;
John Duce in Hong Kong at +852-2977-2237 or
Jduce1@bloomberg.net
To contact the editor responsible for this story:
Angus McCrone at +44-20-3216-4795 or
amccrone1@bloomberg.net.
Reed Landberg at +44-20-7330-7862 or
landberg@bloomberg.net
