Clenergy Pushes Ahead with 500MW Grid Parity Solar Project
Apart from our manufacturing of solar mounting products, and a clean energy service for solar power stations, Clenergy also has an extensive portfolio of green investments. Clenergy has worked in conjunction with key strategic investors on numerous solar power stations and other renewable projects worldwide.
Back in 2018, Clenergy invested in a 33MW in the ‘Poverty Alleviation’ Solar Plant in Guyang County, located in western Inner Mongolia, China. The ‘Poverty Alleviation’ project is a government-backed initiative to provide small solar farms and residential roof-top solar to underprivileged communities free of charge, as a way to give each home an additional revenue source. Most of the recipients to this program live below the poverty line which is below $1 daily wage. Clenergy has been committed to accelerating the deployment of renewable energies in the county since the inception of this poverty alleviation program.
Thanks to our continuous efforts, Clenergy has reached an agreement with the local government for a 1GW investment portfolio of solar projects. The first phase was a 500MW project based on reaching a grid parity scheme with an estimated value of USD 283 million.
William Cao, Vice General Manager at Clenergy, said “The grid parity scheme brings great opportunities for solar plants, with the power generated at an LCOE (Levelized Cost of Electricity). This project was born at the right moment, which will transform the open pit in the Guyang County, and will restore local vegetation to the natural state along the river. This, in turn, will contribute to more ecological benefits”.
Based on the study entitled City-level analysis of subsidy-free solar photovoltaic electricity price, profits and grid parity in China, over 40% of cities in China reached the ‘user-side’ grid parity with commercial solar. The study also pointed out that there is a possibility that over 20% of these cities could achieve ‘plant-side’ grid parity as well.
Our large-scale solar project will see a total generation capacity of 500MW, with over 1,650 hours of power supply forecasted for the first year. All power generated will be used for the Jinshan Industrial Zone, where it is all local power generation and self-consumption after the grid connection.
In addition to the power supplied at lower rates, as compared to the cost of power sourced from the electricity grid, this 500MW solar project will also create new job opportunities and help to relieve local unemployment levels.
“Post the initial commercial operational milestones, the solar plant will be showcased as a beacon example, to illustrate economic growth, poverty reduction, and ecological sustainability. This project also marks an internal shift in implementing strategic development and operational models through cost-effectiveness methods and efficiency targeting. Local industries will benefit a lot from this in the long run”, commented William Cao.
The Clenergy projects team has been making large strides to push ahead with this grid parity solar project. The team continues to push the envelope into factors that are associated with grid parity, ranging from electricity output, self-consumption to net costs and profits.
As of today, relevant documents have been submitted to the Baotou Municipal Development and Reform Commission, under the review and approval process. These are encouraging indications, representing a milestone for this large-scale grid parity project. We firmly believe more projects will come online on a global scale, with the increasing popularity of grid parity schemes.