China to upgrade new subsidy bidding mechanism for solar energy

Source: Xinhua| 2019-07-28 22:40:13|Editor: yan
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BEIJING, July 28 (Xinhua) -- China plans to improve a subsidy bidding mechanism, newly launched this year, to lower subsidies in the solar photovoltaic (PV) sector, according to the National Energy Administration (NEA).

Results of state subsidy bidding for PV power generation projects in 2019 unveiled earlier this month included 3,921 projects with a total installed capacity of about 22.79 million kilowatts.

About 870,000 kilowatts of bid-winning projects have been connected to the electricity grid so far, with a further 21.92 million kilowatts under construction, said Li Chuangjun, an official of the NEA.

The country will prepare for next year's subsidy bidding process in advance and promote high-quality growth of the solar PV industry, Li added.

The subsidy bidding mechanism was designed to spur market-oriented development in the solar PV sector and further reduce subsidies.

The subsidy demand under the bidding mechanism is estimated at 1.7 billion yuan (about 247.11 million U.S. dollars) for this year, lower than the annual budget quota of 2.25 billion yuan previously put forward by authorities.