China Power looks at PV in three new provinces

Chinese state-owned power company China Power New Energy Development Company has announced an ambition to develop PV projects in three further provinces following completion of its two solar projects to date.

With wind, hydro and natural gas projects dwarfing the 100 MW contribution solar makes to the company’s portfolio by capacity, China Power, in a stock market filing of its interim first half results, revealed the second phases of its PV projects in Gansu Wuwei and Gansu Baiyin completed its PV commitment for now. Each project has an installed capacity of 50 MW, staggered over two, now complete phases.

But the interim figures did announce an intent to develop PV projects in Changjiang in Hainan province, Yuanjiang in Yunan and Xishan in Kunming at an unspecified future date.

PV was credited as one of the sources of a rise in six-month revenue from CNY 973 million (US$159 million) for January to July period last year to CNY 995 million to the end of June.

But with the company boasting an 805 MW wind portfolio – with a further 650 MW under development – 525 MW of hydro projects and 325 MW of natural gas assets, PV’s contribution to a six-month profit figure of CNY 167 million, up from CNY 136 million year on year, was modest. China Power also has 54 MW of incineration projects, 15 MW of biomass energy schemes and a 4.5 MW coal-fired generation plant.

At least solar did not contribute to the few negatives outlined in the interim accounts with excessive rains in Fujian last year prompting a bigger-than-expected repair and maintenance bill.

Interestingly for European solar manufacturers trying to persuade the European Union that the Chinese government is subsidizing its solar manufacturers, a statement in the report about the promising future for clean energy investments in China mentions the country’s 12th five-year plan in relation to fostering "national strategic emerging industries," with solar cited as one. The report anticipates good times ahead for solar "on the back of stronger support through favorable fiscal policies and financial aid."

That is sure to make interesting reading in Brussels.