China has chosen 294 solar power projects, which will produce a total generation capacity of 642MW, for its first pilot program wherein it will subsidize at least half of the investment cost. Reuturs.com reports that the expected total cost will be around 20 billion Yuan and should be in production within the next two to three years as stated by the Chinese Ministry of Finance.
232 of the projects will have a 290MW capacity and be constructed by industrial and commercial firms with the output consumed by them. 27 PV projects, with a capacity of 46MW, are to be built in regions that currently have no power supply and will be able to generate enough power for 300,000 residents in the regions. The final 35 projects will total 306MW and will be utility-scale plants with the power output being fed into grid networks.
The Ministry said it would subsidize 50% of the investment for the solar projects as well as relevant power transmission and distribution systems that connect the grid networks. They also arranged specific price and quality requirements for parts and components for the qualified projects.
Reuters concluded that China will be raising its 2020 solar power generation target to 10GW and with incentives, over 2GW in new solar capacity could be installed by 2011.