Chinese solar giant Suntech inks European mega-deal

Chinese solar energy giant Suntech Power announced late last week that it has signed three long-term deals with European clients to provide solar panels with a total of 490MW of capacity.

The names of the mystery firms have not been disclosed, but reports claimed that they include a reseller; an engineering, procurement and construction firm and a solar project developer.

Under the terms of the agreements, 115MW of panels will be supplied next year, with a further 155MW delivered in 2011 and 220MW in 2012. Suntech said that customers have the option to increase order volumes.

The company also issued a statement revealing that it expects to conclude additional long-term supply agreements during the next few months, adding further credence to analyst predictions that growth rates will accelerate across the solar market from next year.

The announcement saw the New York-listed firm's share price climb 22 cents to $17.15 (£10.55).

Jerry Stokes, Suntech's vice president of strategy and business development, said the new multi-year deals would help the company to avoid the overcapacity that has dogged the global solar energy market over the past year.

"With the solar market expected to resume strong annual growth in 2010 and beyond, it is essential for both our partners and Suntech to gain a clearer understanding of future market drivers and project pipelines," he explained. " This will enable us to align product specifications, performance and market demand with capacity expansion and to differentiate our products and the solutions offered by our partners."