Solar module manufacturer First Solar and China Power International New Energy Holding (CPINE) have signed an agreement to collaborate on solar photovoltaic (PV) projects in the US, China and other international markets.

The companies will initially explore collaboration on PV projects in China and identify project investment opportunities for CPINE in the US and other markets.

CPINE has planned 2GW of solar power projects in China by 2020, while First Solar has planned 2.4GW of projects in North America.

First Solar components business group president TK Kallenbach said that both China and the US are important markets with vast potential for sustainable solar energy.

"This agreement can serve as a model for US-China collaboration on renewable energy," Kallenbach said.

CPINE is a wholly owned subsidiary of China Power New Energy Development Co and develops environmentally-friendly energy projects, including wind, hydro, waste-to-energy and natural gas power projects.