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China to Extend Deadline for Late CSP Demos – But Add Penalty

May 25, 2018

IMAGE @Supcon

China’s National Energy Administration (NEA) has announced that the deadline for the first batch of CSP demo projects can be extended to 2020, but with an electricity price reduction mechanism.

On May 22, the NEA issued a notice, “Promoting the Construction of Solar Thermal Power Demonstration Projects”. The notice pointed out that the first batch of solar thermal power generation demonstration projects is the first large-scale demonstration program for solar thermal power generation in China.

It is an important measure to promote the progress of solar thermal power generation technologies and the development of the industry. We shall reach a consensus to attach great importance to the construction of demonstration projects, take multiple measures to focus on building a project promotion mechanism and strengthen collaboration and taking multi-party actions to form a joint effort.

The notice clearly states that the first batch of demonstration projects which are completed and put into production by December 31, 2018, will adopt the benchmark on-grid price of RMB 1.15 per kilowatt-hour (inclusive of taxes). According to the actual conditions of the demonstration projects, the construction deadline of the first batch of demonstration projects can be extended to December 31, 2020; however, at the same time, an electricity price reduction mechanism for overdue projects will be established.

The CSP demo projects can make appropriate adjustments for the construction, but should meet five requirements. In particular, as for changes to the shareholding structure, the absolute controlling shareholder shall remain unchanged.

The notice also stated that those who had failed to submit construction commitments on time (by the end of February, 2018) will no longer enjoy the policies for demonstration projects, which means there are now 16 of the original 20 demo projects remaining on the list.

In addition, the notice also requires the State Grid Corporation of China to ensure that the power generated by these CSP demonstration projects will be fully consumed.

Source (In Chinese): China National Solar Thermal Alliance / NEA

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