Interest in solar PV projects saw a downward trend from Chinese central state-owned enterprises (SOEs) in 2024.
Across nine Chinese provinces and states alone, 369 solar PV projects were cancelled. These combined a total of 29GW solar PV, according to public information.
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This is a shift from the investment appetite boosted in 2021 after the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council required SOEs to achieve a renewable power installation ratio of over 50% by 2025.
However, as SOEs are nearing or exceeding the target set by 2025, the urgency of investing in PV power plants has dwindled, as explored in this analysis piece on PV Tech Premium.
A recent pricing policy reform for grid-connected renewable power projects will also affect the investment calculation models previously in place with investment returns on PV power plants now highly uncertain.
Price fluctuations in the PV industry in the past couple of years as also affected the interest in solar PV projects.
“Central SOEs have clearly not abandoned their investments in PV power plants. Instead, they have merely adjusted their strategies to be more rational and quality-oriented,” said Li Min, general manager of a PV power plant investment company in the Gansu province, to PV Tech.
Moreover, Chinese trade association China PV Industry Association (CPIA) recently forecast PV installations for 2025 in China would decline compared to the additions registered in 2024. Indeed, CPIA forecasts between 215-255GW of solar PV additions in 2025, whereas the country registered a record 277GW of PV installations in 2024.
For more details regarding the uncertainties in SOEs interest in solar PV projects, you can read the full article here (Premium access).
Additional reporting by Jonathan Touriño Jacobo.
