Asian solar energy projects

China announced a significant increase in its expected solar energy capacity target for 2011. With considerable help of new government investment policies that aim to rapidly expand the capacity of solar energy power, China is planning to reach 2 GW within the next two years. The precise figure for China’s new 2020 solar target remains uncertain in dependence of renewable energy stimulus subsidies, but China has expanded its target from 1.8 GW to 20 GW.

To imagine a such kind of target is quite a performance because that’s more than triple the amount of solar panels power installed in the entire world during 2008, the industry’s best year ever. However, some Chinese reports put the number at 20 GW, while other experts say this is an upper-bound of estimate of what China expects to achieve with its new massive investments in renewable technology.

This higher targets will be achieved by enhancing government subsidies and other deployment packages, which currently stand at US $2.93/watt capacity for roof-mounted systems greater than 50 kW. In order to make solar power production profitable, The Government of China has suggested that the current US $.16 per kWH feed-in tariff for ground-mounted PV systems may be adjusted.

As developing Asian economies will continue to expand their solar capacity, there are two questions that for the US interest. First of all, it’s a clear opportunity for American investment. The Indian government will really need help from developed countries to finance its huge subsidies plan. Through direct investment in solar power plants, the US stands to profit while also contributing to India’s clean development and the reduction of global GHG emissions. This mutually beneficial agreement could be a focal point for a productive treaty between developed and developing nations in Copenhagen.

Second, the solar energy development in Asian countries should spark a sense of competitiveness for US domestic energy policy. Subsidies and incentives for deployment of solar energy, as well as direct government investment in solar R&D could put the US in step with India and China as leaders in the deployment of this vital renewable energy technology.



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