Quoting an unnamed industry insider, ChinaDaily.com has reported that China may almost double its photovoltaic targets. However, Meng Xiangan, deputy Board Chairman of the Chinese Renewable Energy Society said the final figure has still to be decided upon.
In other local media reports, it has been said that the 40 GW figure is an estimate provided by Dacheng Wu, the Secretary-General of China Renewable Energy Society PV Solar Committee. Meanwhile, photovoltaic industry insiders have reportedly said that 2015 cumulative installed capacity might reach between 30 and 40 GW, or even higher.
Mercom Capital Group believes that over 4 GW of new photovoltaic capacity could be added in China this year up from the 2 GW seen in 2011, which would take cumulative capacity to around 7 GW. However, the first half of 2012 saw just 1.3 GW come online, according to National Development and Reform Commission (NDRC).
Mercoms Raj Prabhu wrote that more policy is needed, even to support the countrys 21 GW photovoltaic target. "According to reports, Chinas National Grid would purchase excess distributed photovoltaic power (after consumption) at Rmb1 (around $0.16)/kWh, a much higher tariff than previously expected. This tariff is expected to yield a healthy IRR, which could help push distributed generation installations."
He added, "China still has multiple challenges to address including an economic slowdown, tightening credit by the state owned banks, significant debt exposure to solar manufacturers, bankability issues, low tariffs, bureaucracy, cumbersome permitting processes and transmission bottlenecks."