Nǐ hǎo China! GE To Begin Developing Solar Projects In the “Middle Kingdom”
It may be a small step towards developing a major solar market but its significance should not be downplayed as GE Power Conversion (GE: NYSE), with its eye on government mandates to increase the country’s clean fuel resources, will begin developing solar projects in China.
Working with local partners Sinoma International Engineering Co., Ltd. (“Sinoma International”) and Yingda International Leasing Co., Ltd., GE expects to close its first contract by the end of 2013.
Not only will GE Power Conversion will be availing its power converters to potentially large-scale solar projects, it also plans on backing these projects with financing, one of the main reasons large projects often stall or even fail.
If this doesn’t put a little fear into the hearts of Chinese solar manufacturers, they would do well to remember that GE also manufactures a line of thin film solar panels. And with the Chinese government seeking to increase the country’s installed PV capacity to 10 gigawatts (GW) in 2013, GE understands that there is a much greater opportunity to seize and is not afraid of local competition.
Shares of GE were down 1.76 percent in afternoon trading.