Project Focus: eSolar, Penglai Electric sign deal to build 2GW of solar thermal plants in China

Facebook
Twitter
LinkedIn
Reddit
Email

In the first major Chinese move into solar thermal energy, Penglai Electric has signed a master licensing deal with eSolar to build several concentrating solar power plants over the next decade. Penglai, a privately held electrical power equipment manufacturer, plans to develop 2GW of power stations in the Mongolian desert of northern China by 2021 using eSolar’s power tower technology.

The companies said that groundbreaking on the first 92MW installation will take place later this year. China Huadian Engineering will lead the construction process, and China Shaanxi Yulin Huayang New Energy will own and operate the first plant once it’s completed.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The solar plants will be colocated with biomass electricity generation facilities.

“To date, eSolar offers the only CSP tower technology that has demonstrated commercial maturity and economic feasibility,” said Zhao Weikang, chairman/president of Shaanxi Yulin Huayang New Energy. “We’re excited to build our initial hybrid plant as part of the 170-square-kilometer Yulin Alternative Energy Park, the first large-scale alternative energy park in China.”

The Los Angeles Times reports that eSolar manufactures the critical heliostat arrays for its systems in China, and that the deal with Penglai calls for the Pasadena, CA-based company to build its power plant receivers there as well.

ESolar activated the 5MW Sierra SunTower demonstration power plant in Lancaster, CA, in August, a site that was visited by Penglai executives during the negotiations, according to the Times.

“We have almost half a year of production and enough convincing data to convince a company that the technology works as advertised,” eSolar chairman Bill Gross told the paper.

The news follows First Solar’s September announcement that the U.S.-based thin-film module manufacturer and project developer had signed a memorandum of understanding with the Chinese government to build a 2GW solar photovoltaic power plant in Ordos City, Inner Mongolia, China, north of the site of the proposed eSolar installations.

The first 30MW demonstration system for that multiphase project will begin construction by June 1; First Solar has also said it “will review the possibility of module and supplier manufacturing sites in Ordos.”

 

Read Next

Premium
September 11, 2026
The financial difficulties of one of Europe’s best-known downstream solar companies highlight the faultlines running through the continent’s PV and energy storage business.
September 11, 2026
Plans for the US’ “first end-to-end” solar PV critical materials recovery and recycling facility have been announced.
September 11, 2026
This week's PV Chart of the Week profiles the technology breakdown of projected US solar module production capacity.
Premium
September 11, 2026
PV Talk: PERC has the potential to be a “workhorse” in the US cell manufacturing space, Suniva's Matt Card tells PV Tech Premium.
September 11, 2026
Italian power utility Enel has bought two solar PV projects in the US with a combined 625MW of generation capacity.
September 11, 2026
Georgia Power has secured Georgia Public Service Commission (PSC) approval for seven solar PPAs totalling 1,137MW under its CARES programmes.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK