As solar and wind power enter the post-subsidy era, the next few years will be critical for China’s energy transition with investors learning to navigate the uncertainties of market reforms. With the 14th five-year plan – touted as a watershed in China’s energy system development – in the works, a report has recommended clear targets for 2021-2025 in terms of solar and wind power deployment and a reduction of coal consumption.
The race is on to process applications for central payments across the world’s biggest solar market, particularly as qualifying projects must reportedly be grid connected this year. The final electricity price will be a major competitive factor considered by the Beijing authorities.
While recent signs from the Chinese administration, including the National Energy Administration, are that the PV sector in the country will return to robust health, the contagion of the 31/5 policies is still being felt throughout the supply chain. Vincent Shaw in Shanghai investigates the symptoms and causes of Chinese solar’s ill health.
Despite the uncertainty caused by U.S. solar panel import tariffs, deteriorating trade relations between the U.S. and China, and the looming consequences of China’s PV policy change, the solar industry saw a 15% YoY increase in corporate funding in the first half of 2018, on the back of a Q2 rebound, finds the latest Mercom Capital report.
In a Q&A with Bloomberg NEF (BNEF), two solar analysts tell pv magazine they see no PV module price rebound, continuing oversupply, and falling utilization rates. They expect Q4 could be a “hot market” for contract negotiations, while Chinese developers will start overseas construction earlier than planned for two key reasons.
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