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Tech stocks - Sunday, November 8, 2009

Suntech Secures Strategic Utility Partner To Build 10MW Solar Plant In China

As solar companies feverishly compete to gain an advantage in developing new solar plants in China, Suntech Power (STP:NYSE) announced today that they are working with one of the five largest utilities in “the middle kingdom” to develop a solar power plant in Jiangsu Province. Huardian Energy commissioned Suntech to build the 10MW Donagi solar plant that will be completed by the end of this year.

Suntech and China Huadian are motivated to finish the plant by the end of 2009 as it would be eligible for support by the Jiangsu Province's feed-in-tariff policy. This program provides 2.15RMB/kWh for ground-mount solar projects completed in 2009. With their Reliathon product, a complete solution for developing utility-scale solar plants, Suntech should be able to deliver on time.

While the cost of the Donagi plant was not disclosed, Suntech will receive a minority share of the project. This is the also the first project to be developed through Suntech’s strategic agreement with Huadian Energy Development announced back in July. The agreement stated that the two principles would be developing 500MW of utility and commercial rooftop project over the next three years.

Suntech’s manufacturing facilities will be extremely busy as they announced last week that they would be supplying enXco with up to 115 MW of photovoltaic modules in 2010.