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...That expectation was given a boost in September when First Solar, the Arizona-based solar-module manufacturing giant, announced that it had landed a deal to build a solar field bigger than Manhattan near the city of Ordos, Inner Mongolia. The project will dwarf the largest solar plants to date, and eventually generate enough electricity to power the equivalent of 3 million Chinese homes. To fulfill the huge demands, First Solar says it's considering building a solar-module manufacturing facility in the city to support the project. While financial details were not released, news of the deal caused First...

Author: /time Magazine | Title: Tower of Power | 11/2/2009 | See Source »

...leading producer of greenhouse gases, is taking an aggressive path to develop alternative sources of energy. Already the world's leading generator of hydropower - a renewable but sometimes controversial power source because of the impact on river ecosystems - China now aims to be the front runner in wind- and solar-power generation. In 2007 the government directed that by next year at least 3% of large power companies' generating capacity should come from renewable sources (excluding hydropower); this target jumps to 8% in 2020. That may not sound like much, but according to a recent study by the China Greentech...

Author: /time Magazine | Title: Tower of Power | 11/2/2009 | See Source »

...fast-growing country's huge appetite for electricity is behind the push. While China's total power capacity will nearly double by 2020, the amount that could come from wind and solar is expected to jump more than fivefold, aided by significant government assistance. Beijing announced in March it will subsidize 50% of costs for certain solar-panel projects, and 70% in remote regions. (See pictures of the new ways to boost energy efficiency...

Author: /time Magazine | Title: Tower of Power | 11/2/2009 | See Source »

...often happens in China, this potential bonanza could prove to be a mirage for foreign companies. The country's policymakers are nurturing a domestic alternative-energy industry on a massive scale. China is home to more than 100 wind-turbine manufacturers and some 400 solar-panel companies. The country has quickly grown into the world's largest maker of photovoltaic cells. Yet more than 95% of PV cells produced by China in 2008 were exported, indicating the country's output far exceeds domestic demand. Not surprisingly, foreign companies think they are being blocked from the mainland market. The European Union...

Author: /time Magazine | Title: Tower of Power | 11/2/2009 | See Source »

...employees are Chinese. I'm an investor here, a producer here and pay taxes here. So why is there this difference?" Adding insult to injury, Chinese firms are proving to be tough competitors in markets outside China's borders. In Germany, where government subsidies helped stimulate global solar-panel production, an industry association is investigating claims that Chinese panelmakers are dumping their products. Non-Chinese solar firms complain they are undercut in European and American markets by Chinese companies selling similar products for 30% less than rivals. The dispute has the potential to increase trade frictions between China...

Author: /time Magazine | Title: Tower of Power | 11/2/2009 | See Source »

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