- JoNova - http://joannenova.com.au -

Solar boom to bust in China: worlds largest solar PV projects drop 43% as subsidies cut

Posted By Jo Nova On August 17, 2018 @ 3:06 am In Electricity,Free markets,Global Warming,Renewable | Comments Disabled

The advantage of communist autocrats is that they can create government havoc so much more efficiently.

The Chinese solar boom was so big it became the world’s largest solar market. It was so big it pushed up global “clean energy” investment to a record high. China became the veritable show pony of the solar spruikers: “leading the world in clean energy investment”. Mashable tells us it was so big “the solar boom could be seen from space“.

But the star advertisement for renewable glory was all based on subsidies:

Solar capacity, accumulated, China, Rest of World, graph.

The Chinese solar boom was “pretty significant”

A couple of months ago the Chinese government admitted they were cutting the subsidies to make electricity cheaper again for consumers. That hit the stock market. Now projects are being cancelled and orders are drying up for the hapless manufacturers.

The free market might be telling us something

China’s solar industry is at a crossroads

“Without subsidies there’s no return on investment for over a decade, so investors and property owners aren’t interested in distributed solar. With subsidies it only takes seven years to recoup the investment,” he adds.

China’s solar manufacturers are unhappy with recent government policy changes that have put a brake on the sector.

“We’ve already halted work on 11 megawatts of industrial and commercial distributed solar PV projects,” says the marketing director for one solar photovoltaic (PV) module manufacturer in Guangdong province.

Looks like sustainable power is not sustainable:

China has led the world in new solar installations in each of the past five years, helped by guaranteed electricity prices. But the cost of subsidies has been growing unsustainably, and as manufacturers have expanded rapidly to meet demand the risk of overcapacity has grown.

What the government giveth, it can axeth, nevermind about consultation, standing committees and white papers:

The new policy, which came into effect immediately, has no target for the construction of solar farms, and orders local governments not to approve solar farms that need subsidising.

Shame about the human toll.

The blind free market is so much kinder and more predictable.

hat tip to the GWPF

VN:F [1.9.22_1171]
Rating: 9.4/10 (41 votes cast)

Article printed from JoNova: http://joannenova.com.au

URL to article: http://joannenova.com.au/2018/08/solar-boom-to-bust-in-china-worlds-largest-solar-pv-projects-drop-43-as-subsidies-cut/

Copyright © 2008 JoNova. All rights reserved.