Suntech Power Holdings Co Ltd, China's largest maker of solar panels, has signed a deal to develop solar plants in South Africa with up to 100 megawatts in capacity.
The move comes as South Africa looks to increase its clean energy output, as well as boost manufacturing and infrastructure as its seeks to broaden its economic appeal beyond its wealth of natural resources.
The total investment required for building a 100 megawatt solar power plant is estimated to be between $350 million and $400 million.
Suntech already sells solar equipment to Australia, Germany, Japan, Peru, Spain, Thailand, the UAE and the US. The company is the most recent of a number of Chinese renewable energy companies looking to enter South Africa.
China Longyuan Power Group Corp, China’s biggest wind power producer, is reported to be setting up wind projects in South Africa.
China is keen to export its infrastructure and building expertise, with the government offering cheap loans to countries that agree to let Chinese companies build power plants, roads and telecommunications networks.
During this week alone, South Africa’s largest mobile phone operator, Cell C, signed a €240 million loan agreement with China Development Bank; and a memorandum of understanding was signed between South Africa's Standard Bank and China Railway Group to work together on funding for rail and infrastructure projects in Africa.
