Solar Panel major SunPower Corporation (NASDAQ:SPWR) stated that it would ally with Apple Inc. (NASDAQ:AAPL) to construct two solar power projects in the Chinese province of Sichuan. The total capacity of the projects is 40 megawatts.
On completion, the projects will have shared ownership by Apple and Sichuan Shengtian New Energy Development Co Ltd, SunPower’s project development joint venture.
SunPower estimated that the projects would be completed by the last quarter of 2015. The projects are expected to supply 80 million kilowatt hours per year.
Positive market response
The French energy major Total SA holds a majority stake in SunPower. The latter’s shares rose by 1.4% at $33.85 in trading early Thursday on the Nasdaq.
China met a higher than anticipated goal for solar power installations for last month. The country is committed to raising renewable energy use. The rapid industrialization in the last few decades has consumed a lot of energy resources. Also, the manufacturing sector’s activities resulted in large scale pollution.
Solar power is practically a limitless and clean source of energy. Its production is virtually pollution free. No wonder it is the energy resource of the future.
China plans to install 17.8 gigawatts(GW) of solar capacity in 2015. This is around 20% more from the original target of 15 GW for this year. In 2014, China installed 10.52 GW of solar generation capacity. The 2015 solar capacity target is an increase of about 70% of the 2014 met capacity.
Apple harnesses renewable energy to run its data centers. The company stated in February that it intended to purchase $850 million of power from First Solar Inc’s California solar farm. This move would bring down Apple’s energy bills.
A surprising alliance
SunPower and old rival First Solar, Inc. (NASDAQ:FSLR) last month declared a limited partnership, 8point3 Energy Partners LP, to jointly own certain assets. Additionally the firms filed for a proposed initial public offering of the YieldCo. The decision is anticipated to produce stable cash flows for the enterprises that have been expanding their power plant businesses.