Privatized Solar Firms in China Unlikely to Reap The Benefits of Expanding Domestic Market

The low demand of the solar market in 2011 has been pushing China to develop its own domestic solar demand. However, according to China news outlet NE21, most power plants are under the control of state-own enterprises, and it would be extremely difficult for privatized ownership of such projects. Hence, privatized solar firms in China are unlikely to reap the benefits of an expanding domestic market. The report stated that according to studies, the total solar PV system installations in China reached 1.6-1.7GW in 2011. The expected installations in China in 2012 are likely to reach 3-5GW, up by 100-200%. In other words, if China's solar installations in 2012 exceed 4GW, the country will surpass the US and become the third largest solar market in the world. The benefits of such growth in China's domestic solar market seem to tilt toward state-funded firms. The report indicated the feed-in-tariff of CNY1.15/KW will not be seen as profitable for privatized solar firms. The report added that there were more than 20 firms hoping to obtain a 20MW solar power station project in Qinghai, but only a few of the chosen firms such as Renesola and Suntech are privately-owned. Others are state-owned firms. Source: www.digitimes.com