On 7 January 2019, China’s National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) released a scheme for unsubsidized PV and wind power projects.
Under the new scheme, pilot projects will not receive any national subsidies, but they will receive support regarding land and financing.
On 8 January, NDRC added that the decline of the PV project costs in China by 45 percent from 2012 to 2017. According to NDRC, the steady increase of the economic efficiency of solar and wind projects creates favorable conditions to bring down state subsidies and to ease pressures on subsidy funds.
China aims to further reduce the cost of renewable energy power by using economies of scale and by supporting the improvement of technologies.
Taking into account the statement from NDRC and NEA, IHS Markit projects unsubsidized PV will generate only little demand in China before 2020.
To read the full insight, please log in.