• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 10 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 13 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 2 hours Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 2 hours Theresa May to Step Down
  • 13 hours Total nonsense in climate debate
  • 14 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 3 hours Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 16 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 17 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 17 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 9 hours Australian Voters Reject 'Climate Change' Politicians
  • 13 hours Apple Boycott in China

China To Only Approve New Solar Projects If They Are As Cheap As Coal

Solar park

China will only approve new solar and wind power capacity if it matches the country’s coal benchmark on price, Forbes’ John Parnell reports, adding a project approved last month became the first to produce solar at a cost as low as coal-fired power plants.

The requirement for price matching with coal is part of a new set of conditions drafted by China’s National Development and Reform Commission, which will be in effect until 2020 in a bid to handle all the problems resulting from the fast growth in solar and wind capacity installation in recent years, such as energy waste because of grid logjams.

In 2017, Parnell notes, 6 percent of solar power output and 12 percent of wind power produced in China was wasted, and although in 2018 the waste was reduced, it still remains problematic.

The quick growth in solar in particular also put a strain on Beijing’s wallet because of the generous feed-in subsidies for new installations. In 2017, these hit US$15.6 billion (100 billion yuan) and the government has still not paid these in full. At the rate of new solar capacity approvals from the last few years, subsidy costs would have reached US$39 billion by 2020, according to Wood Mac estimates.

The government solved this problem inelegantly but efficiently last year when it announced in June that no more solar power project construction permits will be issued until the end of the year, prompting analysts to cut their capacity addition forecasts by between 5 GW and 17 GW.

But there is also another reason for the new project approval conditions, according to Forbes’ Parnell: Beijing is reportedly annoyed by the fact that Chinese companies are building solar projects abroad that produce electricity much more cheaply than the installations at home. So, now the authorities will require that solar and wind companies not only guarantee they will produce electricity cheaply but also that it will not overburden the grid.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News