Updated: Suntech plots three-phase 500MW project in Panzhihua, China worth US$1.2 billion

July 2, 2009
Facebook
Twitter
LinkedIn
Reddit
Email

Update July 2nd: Suntech’s press office has confirmed the news of a planned 500MW project for Panzhihua, China. The deal is “a non-binding strategic agreement similar to our agreement with the Qinghai government,” said our source, and could potentially lead to the Chinese PV market becoming much bigger than expected in the not-too-distant future.

Original story: Suntech is hitting the headlines twice in as many days with the news that the company is planning to invest RMB 8 billion (just under US$1.2 billion) in a 500MW solar power project in Panzhihua, Sichuan province. The report on JLM Pacific Epoch, citing a report on SPVChina.com, claimed that Suntech signed the framework agreement for the three-phase on-grid project with the Panzhihua municipal government in Wuxi, Jiangsu province on June 26th.

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

Hui Tong Credit Guaranty and the Taiwan-based Nanowin Technology have also expressed an interest in the project, with a rumoured US$150 million lined up for investment in the region.

Commenting on the news, Barclays Capital Solar Daily’s analyst Vishal Shah said that this agreement being a framework agreement, as was the Qinghai news just over two weeks ago, the projects actually taking shape will depend on receipt of NDRC approval, permits, feed-in-tariffs and funding.

Looking forward to the plants’ completion and the likely timescale, Shah commented that, assuming initial volumes of 50MW per project, the world could see implementation in the second half of next year.

However, working with the figures as given in the SPVChina.com report, an investment of RMB 8 billion would suggest a system price of US$2.4/W.

Shah continued: “…Considering potential FIT of $0.16/kWh, the system price appears to be reasonable. Assuming project starts in 2H10, module prices would have to decline to $1.5/W or lower in order for the project economics to work.”

With an eye on the long-term implications of the two huge solar plans, Shah seems optimistic about Suntech’s potential to remain an industry leader, despite the polysilicon oversupply situation.

“We believe STP remains well positioned to emerge as an industry leader given strong traction in both Chinese and U.S utility scale solar markets. More importantly, prospects within the Chinese solar market appear promising – if some of these projects get developed, China could potentially become the third largest market in 2012 (behind U.S and Germany).”

Read Next

Premium
October 17, 2025
According to Ronak Maheshwari of CRC-IB, there has been a struggle for US renewable power projects to secure necessary equity .
October 17, 2025
Norwegian renewable energy firm Scatec has signed lease agreements for 64MW of solar PV and 10MWh of energy storage capacity in Liberia and Sierra Leone.
October 17, 2025
A group of over 20 US states are suing the Trump administration for the cancellation of the US$7 billion Solar For All Scheme.
October 16, 2025
Masdar and Turkey have entered the final stage of US$1 billion agreement to develop the 1.1GW plant in Bor, Niğde Province, central Turkey.
October 16, 2025
T1 Energy and Nextracker have agreed to use the latter’s steel module frames at the former’s new 5GW module manufacturing facility in Dallas.
October 16, 2025
US utility-scale solar additions grew by 56% in 2024, reaching 30GW from 2023’s 19GW and representing over 54% of all new electricity generation capacity added in the country last year.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK