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Provincial Goverments (Hebei,Ontario,Anhui) and Renewable Energy Companies (Ming Yang,Samsung,LDK) Partnering to generate Green Jobs in return for Subsidies

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The Trend of State Government Individual Companies Partnering in Renewable Energy Manufacturing to generate Green Jobs is increasing in the last year.Individual provincial governments in Canada,China and South Korea have recently signed deals with major Renewable Energy Companies to set up Manufacturing Plants in their respective provinces.The government gives various incentives such as land,tax breaks,assured markets,cheap loans  in return for huge green investments from the companies.This gives a strong boost to the provinces which are fighting it out with other provinces  for Green Dollars.While the process may not be exactly democratic and lead to an ideal selection,it does lead to faster implementation and guaranteed jobs in an increasingly tepid global economy.The latest province to join the bandwagon in a major way is Hebei province in China which has tied up with Chinese Wind Turbine Producer Ming Yang Power.Note other Chinese provinces have also tied up with Chinese Renewable Companies to increase Alternative Energy Investments in their regions.

Benefits

These type of partnerships have the following benefits

1) Beating competition for Green Dollars from other provinces in the country as well as other countries

2) Fast Implementation

3) Growth of Green Jobs

4) Creation of Ancillary Industry.

Negatives

They also lead to some friction with charges of partisanship made against the government as other renewable energy companies lose out on the subsidies.The domestic content requirement by Ontario has already led Japan to raise the issue at WTO as its industrial companies lose out on Green Opportunities to Samsung which has won a sweetheart deal.

List of Partnerships

Here is a list of the partnerships between provincial governments and renewable energy companies

1) Ontario and Samsung C&T

A C$7 billion ($6.7 billion) green energy investment by a consortium led by South Korea‘s Samsung C&T Corp will make Ontario a leader in renewable energy technology, the Canadian province said on Thursday.

The project to build four wind and solar power clusters in Ontario, Canada’s most populous province, will have a combined power-generating capacity of 2.5 gigawatts by 2016. That’s equivalent to 4 percent of Ontario’s total electricity consumption.

It will include wind turbines that will generate up to 2,000 megawatts, as well as solar power facilities that will generate up to 500 megawatts.

Ontario has agreed buy electricity from the group.

2) Anhui and LDK

LDK Solar Co., Ltd. (“LDK Solar”) (NYSE: LDK), a leading manufacturer of multicrystalline solar wafers, polysilicon and PV products, today announced that the Anhui Provincial Government has invited LDK Solar to invest in a world class solar cell and module facility in Hefei High-Tech Industrial Development Zone in order to establish a renewable energy manufacturing hub in the Province. The facility will include a total annualized capacity of 1.0 gigawatt of crystalline-based solar cells and 500 megawatts of solar modules

3) Hebei and Ming Yang Power

China Ming Yang Wind  today announced that the Company signed a memorandum of understanding to cooperate on a series of proposed wind energy projects with the provincial government of Hebei, a province in Northern China.

Under the terms of the memorandum of understanding, Ming Yang proposes to develop advanced supply chain capabilities in Hebei province focused on wind power equipment and wind/solar hybrid storage solutions, including a carbon fiber manufacturing facility for the manufacture of 3-6MW large-scale wind turbine blades and battery systems for wind/solar hybrid energy storage. The Hebei government is expected to designate a minimum of 1GW of wind and solar power capacity in Chengde as well as at least 2GW of offshore wind power capacity on Hebei’s coast for Ming Yang and certain utility operators to develop.

4) Gyeongsangnam-do [GSND] and MEMC

MEMC Electronic Materials said Friday that its wholly-owned solar energy provider has entered into an agreement with a provincial government in southeastern Korea to set up 400 megawatts of solar power plants in the province.

The Memorandum of Understanding, reached between SunEdison and the provincial government Gyeongsangnam-do [GSND], requires the renewable energy maker to utilize public land and building rooftops to build the solar plants by the end of 2013.

GSND would in turn support the company in securing the proper land or building areas and would assist in completing the authorization and permission processes.

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Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in or call me on +913340606492.

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