Canadian Solar (CSIQ) shares are heading higher this morning after the company announced that it has obtained the rights to design, install, operate and maintains a 500 MW solar power plant with the Batou National Rare Earth Hi-Tech Industrial Development Zone in Batou, Inner Mongolia.

The project is subject to a feasibility study and government approvals. First phase of the project, to run through December 2011, calls for installation of a 100 MW system. Each of the next two phases would add 200 MW more.

CSIQ is up 72 cents, or 4.8%, to $15.65.