China solar photovoltaic installed
capacity set to rise in 2020
May 7, 2009 - AsiaPulse
China's solar PV installed capacity
is likely to reach 10,000-20,000 megawatts by 2020,
with the implementation of its solar photovoltaic
(PV) roof plan and other supportive measures, China
Securities Journal quoted Wang Zhongying, head of
the Renewable Energy Development Center of the Energy
Research Institute (ERI) as saying.
The predicted capacity is far higher
than the government's original plan, which targets
at 1,800 MW of solar PV installed capacity by 2020.
China has announced a plan to build
the country's largest solar PV project in Dunhuang,
Gansu, with a primary installed capacity set at 10
Bidding for the project, enterprises
have offered an average power price of 1.5 yuan/kwh.
Although the price is still far higher
than the 0.6 yuan kwh price of wind-generating electricity
selling to grids and the 0.3 yuan/kwh price of on-grid
thermal power, it can reflect the sharp decline in
the solar PV costs, said Wang.
Calculated on the basis of current solar
PV cost and on-grid thermal power price, the Chinese
government needs to give one yuan of subsidy to each
kwh of electricity generated from solar power, Wang
Wang also stated that the Chinese government
was likely to draw up more favorable measures to encourage
investment in solar power projects.
China announced a solar PV roof plan
in March, promising to grant a 20 yuan/watt-peak subsidy
to solar PV projects whose single installed capacity
exceeds 50 kWp.
Now, China-based solar PV product makers
like SunTech Power Holdings Co., Ltd. (STP.NYSE),
Solarfun Power Holdings Co., Ltd. (SOLF.Nasdaq) and
the China Technology Development Group Corporation
(CTDC.Nasdaq), are suffering significant losses due
to foreign market shrinkage and a large number of
provisions against price drops.