Alternative Energy Update: China’s Investment to a Russian Solar Power Industry

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Solar Panel InstallationDevelopment of alternative energy is a continuing effort among countries. People have realized the need to minimize the use of fossil fuels as the main energy source. The depletion of fossils is evident and this is unsurprising since we use it more that it is produced. We have to remember the time it takes for fossil fuels to be renewed. It’s impossible to wait that long since by that time, we would’ve been dead.

Recently, China invested $1 Billion to the solar power industry of Russia. As what is known, solar power is an alternative form of energy wherein power is taken from the sun’s heat through the use of equipment such as solar panels.

Solar Systems, which is a subsidiary of Amur Sirius, is presently working on the establishment of a solar panel production facility in Tatarstan Republic (Russia). Considering the amount of China’s investment, the country of China is said to be the biggest private investor in a Russian solar power industry.

In July 2014, Solar Systems was said to win a contract to develop a 175 MW worth of solar energy capacity in 3 different Russian regions. According to the company, they want the capacity to be ready by 2016-2018. The estimated cost for the capacity is around $450 million. Solar Systems is still aiming to win more contracts aside from the one they won in July. In order to abide by Russia’s law that solar power plants should be built using domestically-produced equipment, they decided to build the solar panel plant in Tatarstan. Once established, the plant will be capable of producing around 100 MW-worth of solar panels every year.

By the end of 2014, the company will be choosing their technological/financial partners. Right now, they are considering six applications from European and Chinese companies but they said it’s still too early to decide.

China’s investment isn’t really surprising since it has been strengthening ties with Russia through many different industries including the possibility of building a tran-Siberian railroad route, cutting travel time between each country’s primary population centers.