China is one of the world’s largest suppliers of solar energy products.
And now it’s looking to expand its markets even more.
China recently announced a plan to bring solar power to 40 African countries.
Recently, the European solar market — one of China’s largest markets — has experienced a decrease in demand, leaving China with an excess of supply.
Sun Guangbin, secretary-general of photovoltaic projects at the China Chamber of Commerce for Import & Export of Machinery and Electronic Products, announced plans to begin investigations in Africa immediately in order to specify projects for individual countries.
He provided a few examples of possible projects, mentioning solar panels on top of schools and hospitals.
This would provide a new influx of demand for China’s two largest photovoltaic cell producers, JA Solar Holdings (NASDAQ: JASO) and Suntech Power Holdings (NYSE: STP).
An approximate 100 projects are being formulated across the 40 countries, each costing anywhere from $1.5 million to $3 million.
The overall plan would require about $100 million in investments.
One of the main goals in completing the project is to cut down on the amount of fossil fuels used in Africa.
South Africa currently depends mainly on coal for energy, a dependence that ensures a hefty amount of pollution.
It’s a win-win situation. China gets the business, and Africa cleans up their air.
The renewable resource market is growing, and Africa provides a great location for solar harvesting.
That’s all for now,