Australian solar firm RayGen Resources has signed a Memorandum of Understanding (MoU) with China Three Gorges New Energy to install 500MW of utility-scale concentrated solar photovoltaic (CSPV) power in China within the next five years.
The deal has been signed by RayGen’s Chinese joint venture partner in China, JuYe Solar.
Sales from the proposed deal are expected to offer A$1bn ($776.2m) for RayGen and JuYe Solar.
Once operational, 500MW of CSPV facilities in China are expected to meet the energy requirements of more than 700,000 homes, at full capacity.
Raygen will start deployment of a solar power demonstration plant having a capacity of up to 30MW, following the deal, out of which 1MW is likely to be done within the next 12 months.
CSPV system from the Australian start-up is expected to raise local solar energy production for China Three Gorges at a much lower cost.
RayGen chairman and CEO Robert Cart said: "The global energy industry is in the midst of its most dramatic transformation ever.
"The need to fulfil new energy demand requirements, along with the replacement of retired generation assets, will call for an estimated $10 trillion of investment by 2030 solely on new generation sources.
"The International Energy Agency estimates that around two-thirds of that will be in developing countries, and solar will take the lion’s share. It presents a tremendous opportunity for Australia to build a strong and viable local industry by commercialising world-leading technology innovation."
China Three Gorges’ solar energy division deputy director Zu Liu was quoted by RenewEconomy as saying: "We believe this technology has a big potential to lower down the entire investment of solar power plants, so we decided to do some pilot projects in China to test its commercial use."
Image: CSPV power station. Photo courtesy of RayGen Resources.