• China Cleantech Update April 27, 2016

    News Summary:

    • NEA publishes Q1 solar curtailment rates
    • Jiangsu province to add 900MW wind in 2016
    • NEA publishes Q1 power generation utilization hours 
    • NDRC and NEA release coal production capacity metrics
    • Chongqing government releases guidance on electricity price reform

    Solar: NEA Publishes Q1 2016 Solar Curtailment Rates
    First quarter solar installed capacity and curtailment figures were published last week, and levels are high for some provinces. Nationally, 7.2GW of new solar was installed, raising the total installed solar installed capacity to 50.3GW by the end of the quarter. In the first quarter, total solar power generated was 11.8 TWh, and 1.9TWh of solar power was curtailed, or about 14%. Provinces with the worst curtailments are:

    • Gansu, 0.84TWh curtailed, 39% of total
    • Xingjiang, 0.76TWh curtailed, 52% of total
    • Ningxia, 0.21 TWh curtailed, 20% of total. (NEA CN)

    Severe wind curtailment has been a known risk for years, but investors in solar were hoping that integration of PV would be easier, given lower penetration levels and a good match between resource and energy demand patterns. Last year, Azure started to warn that our models also predicted the emergence of PV curtailment in certain regions, which is now being confirmed on the ground. We advise investors to assess PV curtailment risk as part of normal due diligence, as curtailment is set to become the most significant factor in off-take risk for PV projects going forward.

    Source:Gansu PV