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LDK & CSI Each Sign 500-MW PV Project Deals

LDK Solar has entered into an agreement with Yancheng City of Jiangsu Province for the development of PV power projects. According to the agreement, LDK Solar will develop a number of PV power projects, including PV ground-power stations, and roof and building integration systems totaling up to 500 MW over the next five years.

The terms, according to LDK, including financing, design and specific location of each of the projects, will require a feasibility study as well as final approval from relevant state departments prior to initiation.

"Yancheng City is currently one of the most important wind power bases in China," said Li Qiang, Mayor of Yancheng City. "We plan to partner with LDK Solar to build large ground-power stations to take advantage of wind and photovoltaics as complementary power sources."

In other Chinese solar news, Canadian Solar Inc. (CSI) has obtained rights to design, install, operate and maintain a 500-MW solar power plant system. The agreement was reaching with the Administration Committee of Baotou National Rare Earth Hi-Tech Industrial Development Zone (CPT) in Baotou, Inner Mongolia for the the solar power plant to be located in CPT.

The project is subject to a feasibility study and government approvals and is divided into three phases. The first phase, expected to run from September 2009 to December 2011, calls for the installation of a 100 MW PV system. The second and third phases each call for the installation of 200 MW PV systems. There are no binding commitments until the feasibility study is completed and approvals are obtained.

China is looking to position itself as a world leader in the implementation of renewable energy technologies, and in recent weeks solar has been its focal point.

Earlier this year, the Chinese government said this that it would provide new incentives for solar photovoltaic (PV) projects. The Chinese Finance Ministry plans to provide US $2.93 per watt for projects of 50-kilowatts and above. The Ministry will provide ¥20 [US $2.93] per watt for projects of 50-kilowatts and above.

Last week the Chinese government revealed that it is readying a feed-in tariff (FIT) for utility-scale solar plants that will dwarf the country's previous solar subsidies, and drive a wave of investment into the sector.

The FIT will likely fall in ¥1.09-1.50 [US $0.16-0.22] range per kWh of electricity produced at large-scale photovoltaic (PV) arrays and could be in place by the end of the year.

These moves will likely kick-start the PV industry in China, which up until this point has been almost non-existent. While many solar manufacturers are based in the country, there has been little domestic demand for their products.

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