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Wednesday, October 17, 2012

Beijing proposes scheme for decentralized solar power

Want China Times, Staff Reporter 2012-10-17

A solar park in Shaanxi province. (Photo/Xinhua)

After being on the receiving end of US antisubsidy and antidumping duties, as well as EU antidumping measures, China's solar photovoltaic industry is receiving strong support from the government, particularly for its PV distributed generation systems, the online version of Guangzhou's 21st Century Business Herald reports.

The country's PV manufacturing enterprises received a notice in late September regarding a pilot program aimed at the distribution of photovoltaic power generation.

The National Energy Administration recently asked all provinces to submit by Oct. 15 their plans for implementing the pilot program, highlighting the government's willingness to support the country's PV enterprises and develop renewable energy.

Distributed generation, also called decentralized generation, produces power from various small energy sources and has a lower environmental impact.

The notice said that each province would be allowed to apply for the support of three generation facilities at the most, with the total installed capacity not exceeding 500MW in principle. Given that 21 provinces will be covered under the plan, the total generation capacity could reach 15GW.

The report said that several solar PV enterprises had applied to take part in the program.

The National Energy Administration announced on Sept. 12 that it had raised the country's 2015 target for installed solar energy capacity to 21GW, which would include the capacity generated through PV distributed generation, pegged at 10GW.

However, it later raised its target of PV distributed generation capacity to 15GW. Based on the cost of distributed PV power generation at 15,000 yuan (US$2,400) per kilowatt, the total investment is expected to reach 225 billion yuan (US$36 billion).

In addition, the administration also encouraged provinces to use their own budgets and national subsidies to support the construction of distributed PV power generation demonstration areas.

In the past, China's PV power generation industry had focused on the development of large-scale ground and rooftop photovoltaic power station projects. These two types of projects had faced problems integrating with the grid.

A total of 12 enterprises have been authorized to support the development of the photovoltaic industry.

One industry expert said however that there was still ample room for improving the pilot program and for the development of distributed photovoltaic power generation. Regulating the ways in which subsidies are provided and the amount of subsidies determined was unclear, while PV enterprises are worried about the returns they would get on their investments.

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