Shares of solar LDK Solar Co. jumped 4 percent Wednesday after it signed contracts to supply solar modules to two electric power companies in China.
LDK, based in China, said the first contract is for 30 megawatts of solar modules in the Qinghai province to be delivered in August. The second contract is for 5 megawatts of solar modules in the Jilin province to be delivered in the first half of 2012.
In April, the country released an economic blueprint that gave high priority to developing renewable energy sources using water, solar and wind. And China's Vice Environment Minister Li Ganjie called for a major overhaul of China's nuclear oversight in the wake of Japan's disaster, although there have been no signs that China plans to diverge from its ambitious program to develop the industry.
Still, it is stepping up investment in alternative energy to the benefit of the solar industry, which is collaborating with Chinese power companies.
First Solar Inc., a U.S. maker of solar power equipment, and a Chinese power company say they will collaborate on developing solar power projects earlier this year.
Based in Tempe, Ariz., First Solar is developing a solar power plant in the northern Chinese city of Ordos.
Shares of LDK rose 28 cents to $6.61 in morning trading.