China boosts 2015 solar energy target by 20 per cent

China will boost its 2015 solar target by 20 per cent to 17.8 GW, according to an announcement by the National Energy Administration.

NEA officials cited the need to, “stabilise and expand the solar application market,” as the reason for the move.

The original target for 2014 was 10.5 GW and the ambitious new goals are expected to require a significant effort from suppliers, developers, regulators and investors.

Zhou Ziguang, analyst at Ping An Securities, said: “This is good news for the industry. The state is hoping to boost solar consumption, although the chance of exceeding the target should not be big.”

China fell short on its 2014 target, particularly in terms of the massive 8 GW of distributed generation (DG) it had hoped to install.

The 2015 plan does not break down how much of the 17.8 GW targeted should come in the form of DG.

It remains unclear whether 17.8 GW is too ambitious for the 2015 target but there are indications that the country’s financial and regulatory infrastructure is better equipped to realise the solar targets.

The approval process for solar projects has also been streamlined and a clearer role given to the provinces; capital markets are noticeably warming to PV; a range of issues relating to property ownership for rooftop installations have been addressed; provincial regimes are themselves becoming more familiar with solar development; and the NEA has emerged as the key body to drive solar rollout.

According to reports, the NEA has requested regional departments in 26 provinces to provide plans for solar projects by April.

Hebei is set to see the most aggressive solar rollout in the countries provinces with 1.2 GW of capacity having been allocated to it.

Jiangsu, Zhejiang, Anhui, Qinghai and Ningxia have each been allocated 1 GW of capacity.