China's energy giants join solar gold rush

Fifty companies are in the running for 13 large-scale solar power projects in China totalling 280 MW of renewable energy capacity, according to reports yesterday.

The China Securities Journal reported that the proposed projects have attracted 135 bids with the nation's five biggest power producers, including China Huaneng Group and GD Power, all joining the race for the flagship contracts to build the new solar farms.

The tender results will be announced by 20 August, the newspaper said, citing a source from Yingli Energy, which has tabled bids for four of the projects.

The projects include 60MW facilities in Xinjiang, Gansu and Inner Mongolia, 50MW of new capacity in Qinghai, 30MW in Ningxia and 20MW in Shaanxi province.

The news comes as Chinese solar wafer manufacturer LDK Solar saw sales more than double in the second quarter as the domestic market for panels recovered strongly. Solar panel manufacturer JA Solar Holdings similarly posted strong results this week reporting net income of 196.2 million yuan (£18.1m) compared to a loss of 209.1 million yuan in the same quarter a year ago.

The wave of solar projects is the latest in a series of initiatives from the Chinese government designed to curb greenhouse gas emissions and tackle the country's energy gap.

Earlier this year Chinese premier Wen Jiabao warned he would use an "iron fist" to get emissions under control, promising to close some of the country's most inefficient factories and heavy manufacturing plants. Recent reports also suggest China will introduce a carbon trading scheme by 2015 at the latest.

A joint statement from China's top energy agency and statistical bureau this week confirmed that China remains the world's second-largest energy user, consuming 2.146 billion tonnes of oil equivalent last year, versus 2.382 billio n tonnes used by the US.

The National Development and Reform Commission (NDRC) added that it plans to set regional targets for some provinces to reduce their greenhouse gas emissions and will trial low-carbon projects in eight cities and five provinces.

However, it also insisted that recent measures to improve energy efficiency are already working. "China is in the process of rapid industrialization and urbanization," the report said. "Total energy consumption growth has slowed year by year, thanks to energy conservation and emission reduction measures."