Shi Zhengrong, President and CEO of Suntech Power Holdings Co. Ltd., was not a very familiar face to people outside the solar power industry until December 14 last year. On that day, Suntech, based in Wuxi, Jiangsu Province, became the first Chinese mainland hitech company to be listed on the New York Stock Exchange.

As the first "solar energy concept" stock to be traded on Wall Street, Suntech's successful initial public offerings were considered a major development in China's solar energy industry. The company sold 26.4 million American depository shares at $15 each, bringing in $500 million.

Suntech shares shot up 41 percent to $21.2 on the first day of trading and rocketed above $34 one month later.

Shi, who owns about 47 percent of the company, is by some estimates worth $2.3 billion, surpassing Rong Zhijian, who topped Forbes magazine's list of China's richest people in 2005. At that time, he ranked 98th with $200 million. However, he is likely to lead the list this year.

Before establishing his own company, Shi was a scientist who earned a doctorate in solar energy from Australia's University of New South Wales and holds more than 10 international photovoltaic (PV) patents. In 2001, he returned to China and, together with seven other shareholders, established Suntech, which is mainly involved in the research, manufacturing, sales and servicing of photovoltaic cells, modules and power systems.

In the beginning, the factory was small, little different from a privately run water heater enterprise. But in September 2002, the company built the first photovoltaic cell production line with a capacity of 10 megawatt, which is four times China's total production over the previous four years. The company is China's largest solar energy enterprise and is ranked among the top 10 such companies in the world by Photon International magazine, based on production capacity.

Suntech expanded three times from 2003 to 2004 to meet the growing demand in the market for new energy sources, both domestically and internationally. As of last September, Suntech's production capacity reached 120 megawatt. A new production line has gone into operation, which will increase the capacity to 150 megawatt.

New concept

As the only clean and renewable energy source not limited by geographic factors, solar energy has increasingly become the first choice for sustainable development. Last year, the "solar energy concept" hit world securities markets, leading to a surge in stocks of photovoltaic cell producers. Meanwhile, China's solar energy companies began a rapid expansion based on these optimistic expectations.

Headquartered in Baoding, Hebei Province, Baoding Tianwei Yingli New Energy Resources Co. Ltd. created another solar energy mania in the second half of last year as its shares soared 192 percent, the largest increase among firms listed on the Chinese stock market.

In July last year alone, the company realized sales revenue of 40 million yuan and brought in foreign exchange of $4.37 million from its exports, paying 10 million yuan in taxes, which was equal to the entire amount paid in 2004. "Our orders extend until 2007. Now, our supply cannot meet the demand," said an employee at the company's marketing department.

According to other statistics, from January to October last year, the Shanghai Stock Exchange composite index dropped 14.5 percent. However, new energy shares increased an average of 14.03 percent and solar energy shares showed an average gain of 37.68 percent. If calculated from the lowest level of the year, solar energy stocks showed an almost 100 percent rise on average.

Suntech, Tianwei Yingli and Chinese Electrical Equipment Group had a combined annual photovoltaic cell manufacturing capacity of 300 megawatt in 2005, while China's total production capacity exceeded 400 megawatt.

"After the Internet boom, the photovoltaic cell industry is likely to flourish," said United Securities analyst Yang Jun.

John Manzoni, Managing Director of BP Plc, noted that because of the shortage of electric power in the country and the pressure to protect the environment, China is becoming, after Japan and Europe, the biggest and fastest growing solar energy market.

Last December 1, Manzoni and Zhang Xin, President of China Xinjiang Sunoasis Co. Ltd., announced that they would establish a joint venture to engage in photovoltaic product and system sales in China. Since the 1990s, BP and its Chinese partners have been involved in many large solar energy projects. BP has also provided photovoltaic equipment to remote areas in Tibet, Xinjiang and Sichuan. In addition, the company participated in the alternate power supply project for Qinghai-Tibet Railway's signal system and provided separate solar energy power systems to telecommunications networks in western and northeastern regions and some southern islands.

A solar energy system jointly constructed by BP and its Chinese partners was successfully put into operation in 2005 at the Shenzhen International Garden and Flower Exposition, covering an area of 5,325 square meters. The network has a total installed capacity of 1 megawatt, the largest such network in China, and in Asia. It is also one of the few PV power systems with an installed capacity of at least 1 megawatt in the world.

Solar whirlwind

Last November, Zhang Guobao, Vice Minister of the National Development and Reform Commission, said at the Beijing International Renewable Energy Conference that, based on the Medium- and Long-Term Development Plan of Recyclable Resources, China's total installed solar energy capacity is expected to reach 500 megawatt in 2010 and 2,200 megawatt in 2020. Compared with capacity of only 650 kilowatt in 2004, this goal will create a huge potential in the domestic market.

On January 1 this year, China's Renewable Energy Law took effect. Relative prices, taxation, market quotas and other supporting policies were announced as well. China's renewable energy industry has since entered a new era of development, and the solar energy market will be more open.

China started research on photovoltaic cells in 1958, and the technology was first successfully used in the Dongfanghong 2 satellite in 1971 and in ground projects in 1973. But China began to develop its solar energy industry in earnest in the late 1970s, to which the Central Government has consistently given its support. The technologies were then expanded to applications in microwave relay stations, military telecommunications systems and some other areas.

The Program on the Development of New and Renewable