Solar panel producer Suntech Power Holdings’ China facility is reported to have filed for bankruptcy, but is going ahead with two projects to supply two sites in the Northern Cape with solar panels capable of generating a total of 100 MW, says Suntech founder Dr Zhengrong Shi.

The projects are headed by South Africa-based Mainstream Renewable Power, will be designed and implemented by Siemens and are scheduled to come on line by the middle of next year.

It was reported that Suntech might offload its solar power generation assets in Italy, that it defaulted on $541-million of its bonds and that its China subsidiary is bankrupt.

The cause of Suntech’s China bankruptcy, according to news agency Reuters, is that as feed-in tariffs are government-subsidised power prices, which serve as incentives for clean energy development, the eurozone debt crisis has led to the world’s largest solar power producers, such as Germany and Italy, slashing subsidies for renewable power, triggering a plunge in solar panel prices over the last two years.

The projects in South Africa, however, will go ahead and Suntech’s V-series modules will be used. These modules are well-suited for utility-scale power plant installations and are expected to generate 180 gigawatt hours of electricity – enough to power about 15 000 households and displace about 180 000 t of carbon emissions a year.

The 100 MW solar power plants were among the first projects granted licences under South Africa’s first Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The REIPPPP aims to install 1.45 GW of solar plants by the end of next year and 8.2 GW by 2030.

Suntech CEO David King states that the company is excited to partner with Mainstream Renewable Power and Siemens.

“These landmark projects will show the ability of solar to provide clean, sustainable energy to South African communities,” he says.

Mainstream Renewable Power CE Eddie O’Connor says that, with quality components and engineering, the company is confident that the projects will demonstrate the capabilities of solar energy and set the foundation for a sustainable future energy path incorporating solar power in South Africa.

“With rapid cost declines in the last decade, solar is competitive in the renewable-energy market and we are confident that South Africa’s clear renewable-energy policy will provide a blueprint for other countries in the region,” concludes Shi.