alarm:clock

Tech stocks - Thursday, October 15, 2009

Suntech And Pakistan Government Working Towards Solar Energy Solutions

Pakistan appears to be moving closer to solving its electricity shortage by announcing today that it has entered a “memorandum of understanding” with Suntech Power Holdings (STP:NYSE) to develop the country’s fledgling solar programs. Suntech is currently the largest crystalline silicon photovoltaic (PV) module manufacturer.

Suntech will be working with the Pakistan government’s Alternative Energy Development Board (AEDB) to implement solar programs including the Rural Electrification Program; the creation of Solar Power Pumping Systems with the World Bank; and solar power projects with Pakistani telecom companies.

No definitive contracts have been signed, but with Pakistan’s energy needs expected to increase by 50 percent over the next two years according to government reports, the government needs to move quickly to find solutions to this problem. The Rural Electrification Program is already being implemented and has made some progress. At the end of 2006, the program had electrified 11 villages. Because of the Rural Electrification Program’s success, the government has expanded the initiative to 400 villages in Balochistan & Sindh. The long term goal of the program is to electrify 6968 villages in Balochistan and 906 villages in Sindh. The expansion of this program could significantly improve Suntech's revenues once they sign a definitive agreement with the Pakistan government.