ESolar, based out of Pasadena, CA, just announced a deal to help build a series of solar thermal power plants (AKA concentrating solar power or CSP) in China capable of generating 2 gigawatts (2,000 megawatts). Under the arrangement, eSolar will provide Shandong Penglai Electric Power Equipment Manufacturing with the technology and information to build a $5 billion series of CSP power plants.
China has set a goal for 15% of the nation’s energy to come from renewable resources by 2020. The Associated Press reported on Saturday that due to market pressures, and recent success in generating renewable energy the Chinese government may increase that goal to 20%. Further, Chinese law requires that energy companies buy all energy available through renewable sources (such as wind, solar, and geothermal) before they can use energy from non-renewable sources such as coal.
This deal not only shows China’s interest in generating power from renewable sources, it also shows China’s interest in acquiring knowledge about alternative fuel technologies. Though China is not allowed to export any technology acquired under the deal, all of the manufacturing for the plants will occur in China. With that kind of expertise, it will be tough to keep Chinese industry from using the knowledge to build similar plants in China.
ESolar counts Idealab, Google, and Oak Investment Partners as some of its investors. The New York Times also ran an interesting story about the eSolar deal and some of China’s apprehension about CSP.
