Mega Solar Project Highlights Continued Sector Attractiveness
BMI View : We believe that the progress made on the mega solar project in Turpan Prefecture highlights the ongoing popularity of utility-scale solar projects in Xinjiang. This is despite the downward revision in feed-in tariffs for solar energy in August 2013. Outside of Xinjiang province, we believe that the outlook for the Chinese solar sector remains extremely positive as investors have gained greater clarity and certainty on returns. The government is also likely to keep conditions for the solar sector attractive for the near term as it comes under increasing pressure to fight pollution and support embattled solar manufacturers.
Chinese solar module manufacturer Trina Solar signed an agreement with the authorities of Turpan Prefecture in China's Xinjiang Uyghur Autonomous Region to develop a 1,000MW ground-mounted solar photovoltaic (PV) project in the prefecture on December 30 2013. The project will be completed in phases over 48 months, and each phase will need separate approvals from the government and the State Grid. Construction on the first phase of the project is scheduled to commence in the first quarter of 2014, and the first two phases (with a combined capacity of 300MW) are scheduled to be connected to the grid by end-2014.
Trina has also said that it intends to develop a PV module factory in Xinjiang once the first phase of the project receives approval from the government and grid. Once built, the facility will be supplying modules for the whole 1,000MW project.
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