- Aug 22, 2019 1:53 pm GMT
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This article refers to a study from, Prof Jinyue Yan of Sweden’s Royal Institute of Technology and his colleagues explain that this “stunning” performance has been accelerated by government subsidies, but has also seen China over-investing in “redundant construction and overcapacity”.
The researchers say the subsidy cuts under a new policy in 2018 were a signal that the government wanted to make the industry less dependent on state support and shift its focus from scale to quality.
This, they say, has “brought the industry to a crossroads”, with discussions taking place in China about when solar electricity generation could achieve grid parity.
Kingsmill Bond, an energy strategist at Carbon Tracker, says this is the first in-depth study he has seen looking at city-level solar costs in China and is encouraged by this indication of solar becoming ever-more competitive.
In their analysis, Yan and his team examined the prospects for building industrial and commercial solar projects without state support in 344 cities across China, attempting to gauge where or whether grid parity could be achieved.
Among the measures they suggest are new financing schemes, an effort to “streamline” the complicated procedures and taxes involved, and more geographically targeted government policies.
As their analysis showed the price of solar electricity had fallen further in some cities than others, the researchers recommend targeting future subsidies at the cities that are performing less well – keeping costs to a minimum while still providing support when it is most needed.
Could this be possible in other countries to further accelerate the transition?