China Unveils First Batch of Solar, Wind Farms That Won't Be Supported by Subsidies

[jpak]

https://www.bloomberg.com/news/articles/2019-05-22/china-unveils-first-batch-of-zero-subsidy-clean-energy-projects

China announced the first batch of clean energy projects that will be built without financial support from the government, putting renewable power on a path to compete with existing coal and gas-fired generation.

The country will develop 20.8 gigawatts of renewable projects this year that can only profit from selling electricity into grids at prices equal to or less than coal power, according to a joint statement from the National Development & Reform Commission and National Energy Administration. That includes 14.8 gigawatts of solar and 4.5 gigawatts of wind capacity.

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The announcement is set to trigger a wave of new solar projects in the second half of this year because now that a list of subsidy-free plants has been drawn up, provinces are allowed to organize the bidding process required for projects seeking government aid, according to Shen Zhifeng, an analyst at UOB-Kay Hian Holdings Ltd. in Shanghai.

“China solar panel demand in the second half of the year will accelerate,” said Shen.

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[lunasun]

1. K&R