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Tech stocks - Wednesday, September 30, 2009

Suntech’s 10 Megawatt Solar System Plugs Into The Grid

China’s solar power initiatives reached a significant milestone today as Suntech (STP:NYSE) announced its 10 MW ground mount solar system was operational and connected to the grid. This is the first phase of three that will ultimately supply Shizuishan, Ningxia Autonomous Region with 50 MW of electricity. The entire project is expected to be completed by 2011.

Working with the China Energy Conservation Investment Corporation (CECIC), Suntech has built the largest on-grid solar energy PV power plant in China in less than four months. The plant is currently powered by more than 37,000 solar panels and is projected to displace approximately 20,000 tons of carbon dioxide emissions per year. This work’s extremely well with China’s plan to reduce its reliance on dirty coal energy (currently supplying 70 percent of the country’s electricity needs). The Ministry of Finance announced in July that China would provide large subsidies for utility-scale solar projects.

China has been aggressively putting there money to work as earlier this month First Solar (FSLR:NASDAQ) announced that they had an agreement with the government to build a 2 Gigawatt solar power plant in Ordos City, Inner Mongolia, China. Work on the first of four phases of the plant will begin by June 1, 2010 and the entire plant will be completed by 20119.

Suntech plans to continue working with the CECIC on a variety of projects including large scale on-grid solar projects, urban building integrated PV projects, rural off-grid solar projects, and wind-solar hybrid projects. The CECIC will provide financing and development for future projects while Suntech continues to design solar systems, manufacture and install solar panels, and provide technical support.