China’s lowest ever solar bids in Inner Mongolia – reports

Facebook
Twitter
LinkedIn
Reddit
Email
The region and capacity makes a big difference to solar prices in China. Flickr: Boccaccio1

A tender for 1GW capacity in Inner Mongolia has brought in China’s lowest ever bids for solar energy, according to media reports.

Reuters cited news outlet China Business News in its report that fifty solar developers and manufacturers had bid as low as CBY0.52/kWh (US$0.078) in this government-backed auction.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Reuters said this price comes in at around the top end of China’s coal-fired thermal power prices in various regions.

However, the prices are still a fair way off recent world-beating tariffs set in Chile and Dubai as well as three record breaking bids as low as US$0.0242/kWh submitted, but not yet awarded, in Abu Dhabi this month.

An unnamed bidder told Reuters that policy incentives are given to China’s government-backed projects, unlike for other commercial projects, which tend to experience greater financial losses as a result of “transmission curtailment and subsidy default”.

The country’s solar industry has been dogged by curtailments in certain states and delays to subsidy payments. However Reuters said that on Friday the Ministry of Finance approved renewable power projects for subsidies delayed since 2015. Subsidy delays have also caused a slowdown in new project development as well as grid curtailments in certain regions of China.

China has also deployed far more solar power than targeted in the first half of 2016 leading to significant overcapacity in the PV equipment market worldwide as domestic demand decreases in the second half of 2016.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 10, 2024
Dallas, Texas USA
Solar Media Events
April 17, 2024
Lisbon, Portugal
Solar Media Events
May 1, 2024
Dallas, Texas
Solar Media Events
May 21, 2024
Napa, USA