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Electricity Price for China CSP Demonstration Project is being Negotiated

It has been more than ten days after CSP demonstration projects review work finished. According to some reliable sources, the current projects that have been included into the optional demonstration projects list, total have about 1.6 GW installations, containing about 20 projects. On the basis of this, the estimated electricity price is 1.25yuan more or less.

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Another sources say, the Renewable Energy Division of the National Energy Administration and the NDRC Department of Price Supervision have had a first round of negotiations on November 25. But at present, there is no further information. Based on the analysis, it is not simple and easy to determine the electricity price which shall be decided after rounds of negotiations.

The final price of electricity is the key environmental factor that influences development of demonstration projects. And the eventual lists of demonstration projects will be selected by this final electricity prices among the 1.6 GW of alternative projects. If the final price is in the range of 1.20 ~ 1.25, it accords with the common expectations of the industry and expected capacity of eventual demonstration projects may exceed 1GW; if the final price is too low, then part of the alternative projects may choose to give up.

Based on the fact of fund gap expansion in the national renewable energy development and cutting subsidies in PV industry, Although the above suggestion is reasonable, but is likely to exceed beyond the expectations of the Department of Price Supervision. How long does it take to determine the demonstration electricity price is still uncertain and difficult to predict. In view of the National Energy Administration’s attitude to demonstration projects, the price is expected to issued by the end of this year.

About lily Zhao

Hello, I'm Summer Yang, a senior jourmalist with CSPPLAZA. Nice to meet you dear guy...

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