China looks to accelerate solar thermal power development in a new policy roadmap unveiled on Tuesday, with plans to have as much as 15 gigawatts (GW) of such installed capacity by 2030.
Costs for the solar thermal power, which differs from solar photovoltaic (PV) as it is used to heat fluids such as molten salt, would be broadly comparable to coal-fired power, Chinese state news agency Xinhua reports.
China will aim to have solar thermal power an internationally competitive new energy industry by 2030, according to the fresh guidelines jointly published by the state planner, the National Development and Reform Commission, and the National Energy Administration (NEA).
China aims to source equipment and materials domestically with technologies “that are fully domestically controllable, alongside market-oriented and industrialized growth.”
China’s construction cost per kilowatt of solar thermal power has halved over the past decade from about $4,260 (30,000 Chinese yuan) to around $2,130 (15,000 yuan), with generation costs also declining, Xinhua reports.
Despite cost reductions, the solar thermal power sector still faces challenges, including high upfront investment and weak market competition, an official at the NEA told the publication.
China plans to further lower costs by building integrated projects combining solar thermal, wind, and solar photovoltaic power under coordinated operation.
The country also plans to accelerate research and development (R&D) in key technologies, materials and equipment, by establishing joint R&D platforms between solar thermal firms and research institutions to make technology and equipment domestically produced.
In the solar photovoltaic market, China is also pivoting in strategy—from quantity to quality – as it tackles overcapacity in the solar PV manufacturing sector. The new policy looks to have yielded the first results as domestic firms narrowed their losses in the third quarter.
The solar manufacturing industry in China slashed total losses by 46.7% in the third quarter from a quarter earlier, the China Photovoltaic Industry Association said earlier this month.
By Tsvetana Paraskova for Oilprice.com
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