Great development potential of solar PV in China, policy-driven domestic market is the key

Press release - 2007-09-19
China’s installed capacity of solar PV will reach 100GWp by 2030, generating 130 TWh electricity annually, which is equal to electricity generation of more than 30 large-scaled coal power stations, according to China Solar PV Report, released by China Renewable Energy Industry Association, Greenpeace China, European PV Industry Association, and WWF jointly, on World Solar Congress.

China Solar PV Report is released by China Renewable Energy Industry Association, Greenpeace China, European PV Industry Association, and WWF jointly, on World Solar Congress.

In the past years, driven by international market and domestic policies, China' solar PV industry is booming, and a couple of solar PV producers are emerging. China is among top 3 solar PV producers worldwide. However, the report pointed out, 90% of these products are exported to Europe, US, and Japan et al.. Among the rest, most of PV installations are dedicated to rural electrification or used in off-grid systems. The on-grid solar PV market is still at a relatively early stage.

Analyzing technology innovation and policy framework of PV industry, the report concluded that for wider installation of PV system, the stumbling block is the relatively higher price of PV electricity. To boost China's solar PV development, proper pricing mechanism is needed. It is predicted that with supportive policies PV electricity price will compete with the conventional ones by 2030, and it will achieve a greater penetration into the energy mix.

"Market support programmes, together with technological innovation, will create economies of scale and PV prices will fall as a result. However, the lack of domestic market has limited the PV industry in China", said Li Junfeng, general secretary of CREIA, "China's PV industry has got ready to further invest in R&D; stable policies are needed to guarantee expected payback. To realize PV's competitiveness, it is urgent to establish domestic PV market. "

Solar PV can play a significant role in rebalancing energy mix in China. Yang Ailun, climate and energy campaign manager, Greenpeace China said, "Besides a big producer, China could also become a winner in PV's consumption, if powerful and efficient polices are set up, especially pricing system. Solar PV can provide China with electricity for economic development, as well as environmental and social benefits."

Solar PV could improve living standards in rural area in China through electrification. Meanwhile, the mainstream will be on-grid system including large-scaled applications in desert. "As there is heated debate on energy security and global warming, we could install more solar PV to reduce fossil fuel consumption and GHGs emission."

Other contacts:

Li Junfeng, general secretary, CREIA
Tel: 68002615
Email:
Website:www.creia.org.cn

Liu Shuang, climate and energy campaigner, Greenpeace China
Tel: 6554 6931-162
Email:
Website: www.greenpeace.org.cn

Chen Dongmei, director of climate and energy programme, WWF China
Tel:65227100-3209
Email:
Website:www.wwfchina.org

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