The news makes Canadian Solar the latest Chinese solar manufacturer to unveil plans for a large solar power project in China since the country last month launched a long-awaited plan to offer subsidies for the industry.
As the world's top greenhouse gas polluter, China is trying to catch up in a global race to find alternatives to fossil fuels, and many believe it will become a major market for solar power.
Since China announced its subsidy plan, domestic solar power companies including LDK Solar Co Ltd, Suntech Power Holdings Co Ltd, and ReneSola Ltd have announced plans to develop big solar power plants in China.
Canadian Solar said it signed a letter of intent with the administration committee of the Baotou National Rare Earth Hi-Tech Industrial Development Zone (CPT).
The plant will be located in CPT, which is in Inner Mongolia, and the project will be divided into three phases, Canadian Solar said.
A total of 100 MW of the photovoltaic system will be installed in the first phase, which will run from September 2009 to December 2011. About 200 MW each will be installed in the second and third phases, the company said.
The project is subject to a feasibility study and government approvals, the company said.