China’s solar PV installed capacity is likely to reach 10,000-20,000MW by 2020, according to the head of the Renewable Energy Development Center of the Energy Research Institute.
The predicted capacity is far higher than the government's original plan, which targets 1,800MW of solar PV installed capacity by 2020, said Wang Zhongying.
China has plans to build solar PV project in Dunhuang, Gansu, with a primary installed capacity set at 10MW.
Companies bidding for the project have offered an average power price of 1.5/kwh. Although the price is still far higher than the 元0.6/kwh price of wind-generating electricity selling to grids and the 元0.3/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 need to give 元1 of subsidy to each kwh of electricity generated from solar power, Wang added.
The Chinese government is likely to draw up more favourable measures to encourage investment in solar power projects.
China announced a solar PV roof plan in March, promising to grant 元20/watt-peak subsidy to solar PV projects whose single installed capacity exceeds 50kWp.
Now, China-based solar PV product makers like SunTech Power Holdings, Solarfun Power Holdings and China Technology Development Group Corporation, suffer significant losses due to foreign market shrinkage and provisions against price drops.
By staff writer.