New Hampshire, USA -- Facing a manufacturing overcapacity and a growing need for clean energy, China announced a plan that could have impacts on both fronts.
To learn more what this would mean for China's domestic solar prospects, we turned to Chris Brown, North America general manager of Asia Cleantech Gateway. Below is how he sees the current market and the challenges ahead.
China’s National Energy Administration (NEA) last week announced it is aiming for the country’s installed solar power generating capacity to reach 15 GW by 2015. This is a 50 percent increase from its previous plan.
This new target marks a new urgency in China’s attempts to create a domestic solar market. Right now China’s production capacity is about 30 to 40 GW. Yet, for this year, China’s market size is about 2 GW. Being an exporter of solar modules while their domestic energy needs are so serious has been a sore spot to Beijing for the last five or six years.
The current PV overcapacity has exacerbated the situation and Beijing is responding with new urgency. China sees becoming a major consumer of the solar products as the best way to address the problem.
How successful China will be developing its solar market is debatable but the intention, focus and allocation of funds is clear. In 2011, China has addressed two of the key needs to creating a strong domestic market — a unified feed-in tariff and a transmission infrastructure that can handle renewable energy.
In July, China’s National Development and Reform Commission (NDRC) announced its plans to create a unified, nation-wide feed-in tariff. There will be problems implementing the FiT. The proposed rate is nowhere near enough for PV projects in many parts of the country.
As part of new solar capacity target plan, the NEA will seek international help in building new a transmission infrastructure. It acknowledged that much of the problem with getting the utility-level renewable energy projects connected to the grid has been a lack of engineering expertise.
Foreign cleantech investment and technological expertise have been welcome but management less so. Allowing foreigners working with Chinese engineers on building new UHV lines shows a new openness and honesty in addressing the transmission problem.
China’s energy market is disjointed and implementing nation-wide renewable energy policy is difficult. Last week’s new solar target, however, is another indication that Beijing is urgently working to become a major consumer of its own solar products.
http://www.renewableenergyworld.com/rea/news/article/2011/12/asia-report-china-takes-sharp-turn-in-push-for-solar-energy
To learn more what this would mean for China's domestic solar prospects, we turned to Chris Brown, North America general manager of Asia Cleantech Gateway. Below is how he sees the current market and the challenges ahead.
China’s National Energy Administration (NEA) last week announced it is aiming for the country’s installed solar power generating capacity to reach 15 GW by 2015. This is a 50 percent increase from its previous plan.
This new target marks a new urgency in China’s attempts to create a domestic solar market. Right now China’s production capacity is about 30 to 40 GW. Yet, for this year, China’s market size is about 2 GW. Being an exporter of solar modules while their domestic energy needs are so serious has been a sore spot to Beijing for the last five or six years.
The current PV overcapacity has exacerbated the situation and Beijing is responding with new urgency. China sees becoming a major consumer of the solar products as the best way to address the problem.
How successful China will be developing its solar market is debatable but the intention, focus and allocation of funds is clear. In 2011, China has addressed two of the key needs to creating a strong domestic market — a unified feed-in tariff and a transmission infrastructure that can handle renewable energy.
In July, China’s National Development and Reform Commission (NDRC) announced its plans to create a unified, nation-wide feed-in tariff. There will be problems implementing the FiT. The proposed rate is nowhere near enough for PV projects in many parts of the country.
As part of new solar capacity target plan, the NEA will seek international help in building new a transmission infrastructure. It acknowledged that much of the problem with getting the utility-level renewable energy projects connected to the grid has been a lack of engineering expertise.
Foreign cleantech investment and technological expertise have been welcome but management less so. Allowing foreigners working with Chinese engineers on building new UHV lines shows a new openness and honesty in addressing the transmission problem.
China’s energy market is disjointed and implementing nation-wide renewable energy policy is difficult. Last week’s new solar target, however, is another indication that Beijing is urgently working to become a major consumer of its own solar products.
http://www.renewableenergyworld.com/rea/news/article/2011/12/asia-report-china-takes-sharp-turn-in-push-for-solar-energy
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