Similarly is the solar project economically viable? What do the economic gurus have to say about this. To me looks like a project with a set of political goals.
First Solar plans to make money by selling the plant to a local operator, but it won't be able to estimate its profit until China determines the size of its subsidy for solar energy. The country is expected to offer a "feed-in tariff," which would require utilities to buy solar energy at a fixed price for a set number of years.
http://www.cltv.com/business/sns-ap-us- ... 9226.story
Some of the political gains have already started coming. Positive vibes everywhere even before the project is operationalised.
>>The solar field would dwarf anything in operation in the U.S. or Europe.
Meaning:China greater than US and Europe.
>>"In the U.S., energy policy is made on the state level," Mike Ahearn said. "Every state has a different approach."
Meaning:Chinese central planning is greater than US policy planning. Who needs state legisaltors anyway? Waste of money. China great, US not great.
>>In contrast, Ahearn said China has designated a region within the country for renewable energy production and transmission. It also has promised to guide First Solar through the approval process and make it profitable.
>>Tempe, Arizona-based First Solar announced the deal Tuesday after signing a "memorandum of understanding" with Wu Bangguo, chairman of the Standing Committee of the Chinese National People's Congress.
>>The agreement outlines broad aspects of the project, including deadlines for a feasibility study and the government's role in helping with construction permits. But Ahearn said much of the deal hasn't been worked out yet, including how much First Solar would get paid.
What happens when and if the deal goes bad?
Remember Rio Tinto?
Mike Ahearn can start taking courses on how to deal with the chinese judicial system run by the CCP.
>>First Solar plans to make money by selling the plant to a local operator, but it won't be able to estimate its profit until China determines the size of its subsidy for solar energy. The country is expected to offer a "feed-in tariff," which would require utilities to buy solar energy at a fixed price for a set number of years.
>>Industry experts say they're not sure when that will happen.
>>Bachman said announcements of smaller solar farms have been popping up "all over the place" in China. But investors so far have been unimpressed because of the uncertainty surrounding its subsidy program.
And the biggest drawback.
>>Like most solar plants, however, it wouldn't produce electricity at night.