In a year when global prices have tumbled and global markets are in turmoil, China is building the world’s largest new power station on the Gobi Desert.
The massive 1.3 billion-tonne project is expected to be completed by 2025 and generate enough electricity to power more than 5 million homes, the largest power plant in the world.
It is also expected to help China become the world leader in renewable energy.
The government is investing $1 billion in the project and hopes to build it for $1,200 per kilowatt hour (kWh), which is about half of what the U.S. Energy Information Administration (EIA) projects the project will cost.
The cost of building the new plant, the country’s largest, will be $9 billion, and the government has pledged to spend $600 billion in infrastructure projects over the next decade.
It has also pledged to expand nuclear power generation.
In a recent interview with the Australian Financial Review, Mr. Liu said the project would be built with the help of Chinese state-owned firms.
Mr. Hu, who will head the power plant’s design and construction team, said China had long looked at wind and solar power, and was now using more energy efficient technologies like the Huaneng-1 wind farm in southwest China.
“It’s not a case of China’s energy needs being met in this one project,” he said.
“The country is now looking at the possibility of using a lot more efficient and environmentally friendly technologies.”
The Huanang-1 project was designed to power about 50,000 homes with power generation capacity of about 1.6 megawatts.
The solar farm would generate about 1 gigawatt of power.
The company behind the project, China National Solar, says the project has potential for creating 2 million jobs and $1 trillion in economic activity.
The Hualaneng-2 solar project is about the same size.
The U.K. National Audit Office recently warned that China’s coal plants are the fastest growing source of carbon dioxide emissions, and that China could be on track to double its coal use by 2030.
The Chinese government has already promised to make significant cuts in coal use.
It recently slashed coal use to 6.4 gigawatts by 2020 from 10 gigawatts in 2016.