Hoevik, Norway [RenewableEnergyAccess.com] Through its REC Solar division and its 60 percent owned subsidiary HanBit Solar Co. Ltd., REC announced yesterday the company has entered into an agreement with Daegu City in South Korea to build and own a 2.5 megawatt (MW) solar power plant, which will produce some 3 million kilowatt-hours (kWh) of clean energy per year.
“South Korea has ambitious goals for solar power and an attractive subsidy regime for the PV industry, and offers a promising new market for our REC Solar division,” says Erik Thorsen, President and CEO of REC.
The power plant will be installed on top a water treatment facility in Daegu City and will contain around 11,000 REC Solar modules. Total investments will amount to slightly more than €10 million [US $13.6 million]. HanBit will enter into the necessary contracts for design and construction of the plant over the coming months.
It is assumed that the project will qualify for Clean Development Mechanism (CDM) credits, allowing for trading of Certified Emission Reductions (CER) under the Kyoto Protocol. HanBit expects to own the power plant for up to 15 years before it is handed over to Daegu City. HanBit is 60 percent owned by REC and 40 percent by a local partner.
“We are currently exploring various ways of building robust and profitable market channels that can support our increasing downstream activities, and this project will be an important step in that direction. It will also allow us to integrate the entire value chain from polysilicon production all the way to electricity generation,” said REC’s Thorsen.
REC Silicon and REC Wafer are one of the world’s largest producers of polysilicon and wafers for solar applications.