China dispatch: $255 billion needed for achieving renewable targets

Share

According to plans from the Chinese government, the cumulative capacity of solar and wind power will reach 35 GW and 100 GW respectively by the end of 2015, and 70 GW and 160 GW by the end of 2017. Calculations by E&Y shows the total investment will be at least RMB1.58 trillion ($255 billion) for these targets to be reached.

“Financing is always a major challenge for PV projects," said a high-level JinkoSolar official cited in the E&Y report. E&Y predicts the investment required for distributed PV targets alone will grow from RMB80 billion ($12.9 billion) in 2014 to RMB178 billion ($28.7 million) in 2017.

To meet the looming financing challenge, E&Y suggests China use multiple innovative funding modes including yieldcos, institutional financing, leasing, and crowd-funding or community-funding.

Yieldcos in particular can acquire financing directly from the stock market for operating projects. Institutional funds usually show more interest in long-term projects with stable returns. Leasing can be an alternative funding method for some projects. Crowd-funding and community-funding could help to fund both small distributed PV projects and individual investors.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

Elastocalorics could replace heat pumps, air conditioning systems

16 July 2024 Elastocalorics have the potential to replace current air conditioning and heating systems, offering significant energy savings when paired with techno...

Share

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.