Based on the price agreed for the first year of the five-year contract, the total deal would be worth almost $4 billion to the $1 billion company. However, with input costs rising and the state-owned sponsor likely to expect to pay lower fees for subsequent years, the TOPCon manufacturer’s margins may not remain so fat.
The fossil fuel assets belonging to the state-owned parent of China Power International Development might overshadow the latter’s green claims but the Hong Kong-listed utility said it reached full operation at 940 MW of solar farms in 2020–more than half of it unsubsidized.
State-owned power company SPIC is all set to contribute to the figures after announcing it wants to add 15 GW of renewables capacity during 2021 and China Glass, fresh from rebuffing Xinyi Glass’ takeover offer, is on the hunt for more manufacturing facilities.
The Italian energy company has developed four big solar plants in the last 21 months to add 794 MW of generation capacity to its 3.67 GW solar portfolio and is emblematic of companies from the wider energy sector focusing on the renewable technology.
The Chaoyang facility is the largest of the first batch of central-subsidy-free solar projects approved in the world’s biggest solar marketplace. China Power has awarded three construction contracts to entities owned by its SPIC parent company.