Canadian Solar secures rights for 500 MW Inner Mongolian solar plant

Ontario’s Canadian Solar (Nasdaq:CSIQ) said today it has obtained rights to build a 500 megawatt solar power plant.

It is expected to be located in the Baotou National Rare-Earth Hi-Tech Industrial Development Zone, also known as CPT, in Baotou, Inner Mongolia. The project received clearance from the CPT region’s administration committee.

The three-phase project is still pending a feasibility study and additional government approvals. Phase one of the project includes a 100 MW photovoltaic system, which would be put in place from September 2009 through December 2011.

The additional phases would be 200 MW PV systems to be installed at an unspecified time. Financial details about the project were not disclosed.

“This project clearly shows the Chinese government's determination to develop its domestic PV market,” said Canadian Solar’s CEO Shawn Qu, in a news release.

Canadian Solar is incorporated in Canada, but conducts its manufacturing operations in China (see Canadian Solar signs deals for 700 MW of wafers). It manufactures solar products such as ingots, wafers, solar cells and modules, as well as solar systems for customers worldwide (see Canadian Solar signs distribution agreement in Spain and Canadian Solar signs large supply contract with SolarWorld).

Earlier this month, Canadian Solar entered into a strategic cooperation agreement with Beijing-based Guodian Power Development, one of China's largest power generation companies. The two said they plan to build and operate PV power plants in China, starting in Gansu, Ningxia, and Inner Mongolia and then expanding to other provinces (see Canadian Solar, Guodian Power sign PV JV).

Canadian Solar isn't the only company developing 500 MW solar projects in China. Yesterday, Xinyu City, China’s LDK Solar said it plans to partner with the city of Yancheng, China, to develop 500 MW of solar photovoltaic projects (see LDK plans to develop 500 MW of solar for Chinese city).

These projects are advancing in China due in part to the central government's “Golden Sun” project announced in July to subsidize up to 70 percent of the costs of building solar farms with a total capacity of at least 500 MW by 2012, versus the country’s current capacity of 80 MW (see A-Power enters the solar market with $50M acquisition). 

Chinese solar cell and panel maker Suntech Power Holdings also cited the subsidies in May as clearing the way for it to build a 1.5-MW grid-connected solar installation in Jiangsu Province (see Suntech kicks off largest solar project in Jiangsu).

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