Buoyed by recent regulatory changes, China’s solar power companies are looking to invest in large-scale power projects across various provinces.
JinkoSolar, a solar cells and photovoltaic manufacturer, has announced that is has signed an agreement with the administration of Lishui, Zhejiang province, to set up 500 MW of solar power capacity over the next five years. The company intends to install 100 MW of capacity every year, which would include 60 MW of distributed solar power capacity, and 40 MW of ground-mounted capacity.
The announcement is the latest among many similar ones issued over the last few weeks and months. The most recent one was made by Hareon Solar which stated its intention to invest $1 billion to install 600 MW of solar power capacity in the Hebei province. During the first phase of this project, the company intends to install 300 MW of solar rooftop capacity. The company had last year announced plans to invest $1.6 billion to install 1,000 MW solar power capacity in Inner Mongolia province.
The recent enhanced activity in the project development sector is the result of the favorable changes in regulations. The owners of rooftop solar power systems can now use an easier invoicing system for the electricity sold, and can also submit their VAT claims with the State Grid Company itself instead of the tax regulator.
The government also released templates for power purchase agreements for large-scale solar power projects. This move is expected to provide confidence and certainty among the project developers and lenders.
The central government has announced several measures to support expansion of solar power infrastructure and is also urging the provincial governments to implement similar additional measures themselves.
Chinese provinces are looking to implement large-scale solar power projects as they endeavour to meet the energy intensity reduction targets set by the central government. China plans to reduce its energy intensity by 16% by 2015.
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