China plans to enter a subsidy-free solar market beginning in 2021

Facebook
Twitter
LinkedIn
Reddit
Email
China is in a transition period from subsidy-driven, to a market, driven by both “grid-parity” and “FIT supported” projects and eventually entering a subsidy-free market period beginning at the start of 2021. Image: Sungrow

According to Asia Europe Clean Energy (Solar) Advisory Co (AECEA), analysis of China’s National Energy Administration (NEA) consultation paper, released April 10, China will have a subsidy-free solar market with clear policies and frameworks in place, beginning in 2021.

A consultation paper outlining the “Work Plan for the Construction of Unsubsidized (Grid-Parity) Projects for Wind & Solar PV” that has just been released utilities will have to provide the highest priority level for grid connection to approved subsidy-free solar power plants that can start construction in 2019.

AECEA noted that:

“Projects requiring state subsidies are put on hold, i.e. all provinces & regions shall not conduct bidding rounds for solar PV projects requiring state subsidies until the first batch of grid-parity projects in 2019 have been determined by the national authorities. In this context, in regions that can construct grid-parity PV projects, relevant provincial development and reform commissions should submit the first batch of 2019 PV project list to the national authorities by April 25.”

PV power plant projects which were approved in 2018 or in prior years have the option to be converted into unsubsidized projects and would be given the overall highest priority.

According to AECEA, there were more than 7.8GW and PV projects which have been approved but without a quota, while there was more than 32GW of PV projects that had not been constructed but were without having a quota.  
AECEA said that China’s NEA was considering the introduction of a nationwide centralized bidding process for projects seeking subsidies in the months to come. 

AECEA added: 

“By the end of June 2019, authorities aim to have finalized a kind of template or standardized text to be used for settling fixed tariff purchase and sale contracts between the involved stakeholders.
 Furthermore, NEA intends to have finalized their intended policy for green electricity certificates as well by June 30. Overall, the effective date of the consultation paper is until Dec 31, 2020, i.e. it is valid until the end of the on-going 13th Five-Year-Plan (2016-2020).”

China is therefore in a transition period from a subsidy-driven market, to one driven by both “grid-parity” and “FIT supported” projects and eventually entering a subsidy-free market period beginning at the start of 2021. 

AECEA believes the success of the plans rests with the two national grid operators in providing every generated kWh will be off-taken first, for at least 20 years.

15 September 2022
Bifacial PV modules will be the dominant solar PV technology globally within one or two years; in the utility-scale sector, their market share is already above 70%. This webinar will provide a clear view on the successful implementation of bifacial technology, maximizing system performance and minimising LCoE.

Read Next

August 15, 2022
How can solar PV projects boost their power output and raise profits amid rising module, land and equipment costs
August 11, 2022
Finlay Colville, Solar Media's head of market research, lays out the UK's path to achieving 40GW+ of solar PV by 2030 after rebounding from recent headwinds in its solar sector
August 10, 2022
Canadian Solar plans to build an integrated PV manufacturing plant in Western China, with a capacity of 200,000MT of high-purity polysilicon, 10GW of both cells and modules and multi-GW productions of raw and auxiliary materials.
August 10, 2022
OMERS Private Equity has acquired a minority stake in the Arizona-headquartered solar operations & maintenance (O&M) provider NovaSource Power Services.
August 9, 2022
The Public Service Commission of the District of Columbia (DCPSC) has approved a 15-year power purchase agreement (PPA) with renewables developer Invenergy for 73MW of solar power to meet a 5% renewables target for district’s default electricity supply.
August 8, 2022
India deployed 8,359MW of solar PV in the first half of the year, marking a significant increase of 71% compared to the same period last year

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
London
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event