Suntech signs South African solar deal

Chinese solar energy giant Suntech Power Holdings has today inked a deal that should see the company develop one of Africa's first large-scale solar photovoltaic energy plants.

The company confirmed that it has inked a non-binding memorandum of understanding with an undisclosed South African firm that will see Suntech develop a 100MW solar farm in the country.

The deal contained no details of financial terms, but reports suggested the project was likely to cost between $350m and $400m.

Rory Macpherson, director of investor relations at Suntech, told Reuters that the company had not finalized the timetable for the project, but he hinted that the agreement was likely to be the first of many South African deals for the company as it seeks to tap into a photovoltaic market that could be worth over $1bn a year.

"Obviously, we are committed to developing the solar market in South Africa, " he said. "We will look for solar opportunities as soon as possible."

In related news, California is set to build its first solar thermal power plant in two decades after the state's energy commission gave the go ahead for the 250MW Beacon Solar Energy Project.

Jeffrey Byron, a member of the California Energy Commission, said that he hoped the decision would be the first in a flurry of approvals for proposed solar plants in southern California.

Over the past few weeks the commission's siting committee has recommended that over 2,100MW of solar projects be granted planning permission, including the 250MW Abengoa Mojave facility, 1,000MW Blythe project and 370MW Ivanpah development, as well as the Beacon site.