China’s state media reported on Friday that the country will soon announce its benchmark grid feed-in tariffs for photovoltaic power projects, two years after the government said it was considering the tariffs for utility-scale solar power projects. The step would provide clearer guidance for solar power project developers as they examined investment options.
A fast roll-out of China’s solar panel installations is hampered by the cost premium of solar vs coal-fired generated electricity. In addition, rigid pricing and slow grid connections also restrict deployment pace.
The benchmark prices at which solar power developers sell electricity to grid operators will be higher than those for wind power, the China Securities Journal reported, citing a source with the National Energy Administration.
At present, China does not have unified grid feed-in power prices but pricing regulator and economic planner, the National Development and Reform Commission, sets on-grid power prices on a project-by-project basis. For instance, the commission set the on-grid tariff for four new utility-level photovoltaic power stations in Ningxia region at CNY1.15 (US$0.178)/kWh in April last year, sharply lower than the CNY4/kWh it approved for two projects in 2008.
