First Solar has signed a memorandum of understanding (MOU) with the Chinese government to build a 2 GW solar power plant in Ordos City, Inner Mongolia, China.
Pursuant to the MOU, the solar project in Ordos will be built over a multi-year period. Phase 1 will be a 30 MW demonstration project that will begin construction by June 1, 2010, and will be completed as soon thereafter as practicable, First Solar says.
Phases 2, 3 and 4 will be 100 MW, 870 MW, and 1,000 MW, respectively. Phases 2 and 3 will be completed in 2014, and Phase 4 will be completed by 2019.
The project will operate under a feed-in tariff that will guarantee the pricing of electricity produced by the power plant over a long-term period.
The MOU contemplates that during the implementation of the initial phases of the project, First Solar will actively review the possibility of module and supplier manufacturing sites in Ordos, and other considerations required to support a First Solar investment. First Solar also intends to facilitate expansion of the supply chains in China for thin-film photovoltaic module production and for the recycling of photovoltaic modules after use.
The MOU sets forth the agreement in principle of the parties concerning the project and related activities. Final agreement between the parties is subject to the negotiation and execution of definitive agreements among the parties.
SOURCE: First Solar
