Chinese Firms Developing Solar Power Plants Starting at 10 cents/kWh
The late August round of bids for utility-scale solar power projects in China yielded a new milestone in the economics of solar power in China: a sub-Yuan/kWh price for solar power. To achieve this impressive number, the Chinese government has used the state-owned sector (and particularly enterprises under the direct control of the central government) to help subsidize the price of solar power, to the point where the economics appear to be unsustainable.
Beijing also appears to have decided — at least for the time being -- that large-scale development of solar power will occur more rapidly through a coordinated effort led by a rather short list of government-controlled enterprises. China is clearly arguing that marshalling the resources of the state in the form of huge government subsidies for solar power should trump market and innovation-driven solutions to reduce its cost.