OCI is planning to start a highly profitable dispersing solar energy generation business in China, which has the world’s biggest solar energy market. OCI’s plan has the same way as how Chinese government is politically working on ‘dispersion development’ that uses unused space such as buildings and factories. It is also going to accelerate its investment into Chinese solar energy generation market. It also didn’t hide from showing ambition to get results in China that come close to as the ones that it got from performing North America’s biggest 400 MW ‘Alamo Solar Energy Project’.
OCI announced on the 28th that it held ‘Groundbreaking Ceremony of OCI-Jiaxing Xizhou 2.5 MW Solar Energy Power Plant Construction’ at Hilton Hotel located in Xizhou district while Jiaxing affiliates, CEO Lee Woo Hyun of OCI, CMAG, companies that specialize in installing solar energy, and etc. were on attendance on the 27th.
OCI is planning to build total of 20 MW solar energy power plants in Xizhou district by next year and it began its construction of 2.5 MW power plants as a first step on the 28th. OCI established Jiaxing Solar Technology in last March to personally direct the project. It is predicted that this solar plant will achieve sales of 10 million dollars (approximately 11 billion KRW) after the completion, which is set to begin its commercial production this August.
OCI will install solar energy generating units on the roof of super lighting•CMAG building in Jiaxing city and it will first sell its electricity that is produced to the landlord for 25 years. The rest of electricity will also bring sales by being sold to electric power companies.
The reason for OCI to go after Chinese solar energy market is not just due to its high profit, but also due to its altered structure, which increases profits as the users’ electricity usages increases. This move can be seen as a strategic move to strengthen its position in relatively simple Chinese solar energy market by fully using experience that it gained from successfully finishing 400 MW Alamo project.
There will be total of 17.8 GW solar energy that is planning to be installed this year according to China NEA, and 6 GW out of this solar energy will be built as a dispersion-type. Chinese government announced ‘Policy to Accelerate Dispersing Solar Energy Generation’ in September of 2014 and it is continuously promoting installations in cities, farms, factories, public transportations, public services, and etc.
“Although America’s solar energy generation business in 2011 began as 3 MW at first, we were able to raise it to 400 MW within a short period of time. Construction of solar energy power plants in China will be a foundation that will enable us to secure profits and build world’s biggest market.” CEO Lee Woo Hyun of OCI said about the importance of Chinese solar energy power plants.
Staff Reporter Ham, Bongkyoon | hbkone@etnews.com