Dec 30 2010
The Chinese government has announced a new strategy in support of its solar energy promotion. With the aim of achieving a total installed capacity of 20,000 MW by 2020, it plans to install at least 1,000 MW annually.
The cost of solar energy at present is around seven times the cost of coal-generated power. The government plans to decrease the cost through subsidies and support. Up to 50% of the plant component costs will be covered by financial support, while the other costs will be subsidized at the rate of 4 to 6 yuan per installed watt.
The Beijing government has identified 13 special areas that are favorable for development of its demonstration projects. The new strategy aims to install panels to cover around 700,000 square feet of commercial and industrial roofs in Beijing.
Beijing’s new strategy is to aid the Chinese industry sector, in addition to helping it to achieve the targets it has set for emission reduction and renewable energy. China exports 98% of its photovoltaic components production and is the world’s largest exporter. The US threatens to impose duties in protest against the extreme low price. Europe may reduce its demand for Chinese components due to the anticipated cuts in subsidy. The devaluation of the euro against the yuan has added to it woes, and may lead to the collapse of its photovoltaic components market.
Source: http://www.ebeijing.gov.cn/