NEA

The state-owned China News Service today reported almost $80 million is left in the pot for large scale project subsidies this year despite almost 420 facilities with a combined generation capacity of 1.77 GW having missed out in the auction.

Quasi-governmental body the CPIA has released first-half figures for the world’s biggest solar marketplace which show production volumes for export markets continuing to expand and the domestic picture set to rebound after public solar subsidy levels were published.

China’s National Energy Administration has given the greenlight to 3,921 ground-mounted and distributed generation projects. The approved energy price bids ranged from $0.0407 to $0.080, depending on system size, for an average price of $0.048.

The world’s biggest solar market could be about to replicate that feat in energy storage, provided it manages to reform the payment system for rewarding the grid services offered by batteries.

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.

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.

Just 5.2 GW of new PV generation capacity was installed in the world’s biggest solar marketplace in the first three months of this year. And virtually all of that was made up of small systems as developers wait to see what emerges from solar policy discussions in Beijing.

The NEA has offered a broad hint that RMB3 billion will be made available in incentives this year – including RMB750 million for residential PV. Roth Capital Partners says achieving 40 GW of new capacity will hinge on timely action by the National Energy Administration.

The emphasis on grid-parity PV has been highlighted in a consultation document that has emerged after several weeks of haggling in Beijing. Chinese analyst AECEA says the success of any subsidy-free effort would hinge on the ability of power companies to transmit and guarantee consumption of power generated by new projects.