NDRC

The nation’s plan for grid-parity solar – brought forward to ease a mounting public PV subsidy debt burden – could be left in ruins by a newly-announced scheme to part liberalize the electricity price, itself motivated by a need to bail out financially stricken state-owned power companies.

The showpiece 3.6 GW Fengning county project which will offer grid services and back-up power at the 2022 Winter Olympics is part of a 31.15 GW construction pipeline of projects, many of which are set to come into service next year.

The Chinese manufacturer is holding out hope a boom that is expected to start imminently will help it turnaround losses that forced it to issue a profit warning last week. Getting its new production line in Qujing up to speed will help, provided the demand materializes.

Some 168 projects will be developed across 16 provinces free from central government subsidy. The fact the average capacity of such projects has tumbled indicates Beijing’s plan to accelerate the arrival of subsidy free solar may be on track.

The Beijing authorities have confirmed the payment levels to be made according to type of project and region from July onwards but an auction process will be involved so the figures are for guidance only. No decision has yet been made on the 30 GW of capacity added since the end of May.

The thin-film manufacturer and project developer says the Chinese government’s package of measures to drive subsidy-free solar projects will ensure a proliferation of new capacity additions and consolidate the strength of big players like itself.

Beijing has outlined a series of policies mandating local and provincial authorities, state-owned banks and grid operators to pull out the stops to drive the rapid escalation of subsidy-free PV projects. The announcement has seen Chinese solar stocks on the rise.

Curtailment issues will prompt Chinese government to focus on new project development in the urban east, to reduce power losses. The central authorities also want to ramp up the electricity trading market and peak shaving technology.

By analyzing satellite imagery, research group, Coalswarm has found that coal-fired power stations in China totaling 259 GW, which were supposed to have been scrapped, are being built. When fully commissioned, they will reportedly represent the equivalent of total coal-fired capacity in the United States. Not only does this news go against China’s current push into renewables, but also raises serious air pollution concerns at a time when levels should be decreasing.

Rumor has it industry lobbying has persuaded the government to agree to 300-500 MW of distributed PV in each of the populous nation’s 34 local government areas, with a reduction in “non-technical costs” making up for a lack of guaranteed payment.