By Mark Osborne Sep 29, 2016 12:32 PM BST
AECEA also noted that
the potential severity in the FiT cuts came as a surprise in the distributed
generation sector as this was recently considered to be favoured by the NEA in
light of the utility-scale ground-mounted PV sector suffering from grid
curtailment issues in several regions. Image: DuPont
China’s National Energy Administration
(NEA) has published a draft version of proposed feed-in tariff (FiT) levels for
ground mount and distributed generation PV power plants for 2017 that could
lead to significant cuts to both sectors and overall curtailment of
installations.
In a client note, Asia
Europe Clean Energy (Solar) Advisory Co. Ltd. (AECEA) noted that the FiT levels
remained ‘unofficial’ and were only in 'draft' form as they were disseminated
via various Chinese media outlets.
Ground-mounted
solar PV Power plants:
Region
1: RMB 0.80 to 0.55 = minus 37%
Region 2: RMB 0.88
to 0.65 = minus 25%
Region 3: RMB 0.98
to 0.75 = minus 23%
Distributed
Solar PV:
Region
1: RMB 0.42 to 0.20 = minus 52%
Region 2: RMB 0.42
to 0.25 = minus 40%
Region 3: RMB 0.42
to 0.30 = minus 28%
However, without a major change the FiT cuts would potentially lower ROI
(return on investment) levels significantly for PV project developers and
therefore impact installations and demand throughout the supply chain.
AECEA also noted that the
potential severity in the FiT cuts came as a surprise in the distributed
generation sector as this was recently considered to be favoured by the NEA in
light of the utility-scale ground-mounted PV sector suffering from grid
curtailment issues in several regions.