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While the establishment of photovoltaic power generating stations is rapidly increasing in China, connecting these stations to local power grids is not progressing at an adequate rate, according to a report from the China Photovoltaic Industry Association (CPIA).
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E-World 2025
CPIA said that the largest shortage in grid capacity is in Gansu province in northern China. PV power stations with a total installed capacity of 663 MW have been set up in Dunghuang, Gansu, but the local power grid has the capacity to absorb just 24 per cent of the generated electricity. Despite this, a further 507 MW of PV power stations have been approved for construction in Dunghuang.
According to the CPIA, grid capacity in Xinjiang province in north western China, is about 40 per cent short to absorb PV-generated electricity, and in Golmud, in Qinghai province in western China, the grid capacity shortage is as much as 70 per cent. The CPIA said that this shortage of grid capacity will result in revenues falling short of original projections, and reduce the willingness to invest in PV power stations.
In addition to a shortage of grid capacity, delays in distributing government subsidies based on feed-in tariff rates has troubled PV power stations operators, according to the CPIA. It said that the delays were a result of the funds earmarked for the subsidy being insufficient, and that local governments’ examining procedures being long and complicated. For 15 PV power station operators, subsidies worth over $1.6 billion are owed, and it is likely to take 18 months for operators to receive the subsidies from application.