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Qinghai sets CSP tariffs at 0.55 yuan/kWh (7.5 cents/kWh)

January 18, 2025
Gonghe 50 MW tower CSP by Power China in Qainghai Province

Here; Power China’s first project; Gonghe 50 MW Tower CSP in Qinghai Province, online since 2022. Qinghai tsusequently inaugurated the 100 MW Golmud Tower CSP project in the 1 GW renewable energy park.

Source; Weixin

Qinghai has set tariff policy for concentrated solar projects at 0.55 yuan/kWh (in USD; 7.5 cents/kWh) This has effectively settled ongoing debates over solar thermal power pricing, marking a milestone in the industry.

The 0.55 yuan/kWh tariff for pure solar thermal power generation in Qinghai is not a lucky accident; it reflects the healthy development of China’s solar thermal power industry, says Wang Zhifeng, Professor of Institute of Electrical Engineering of Chinese Academy of Sciences (IEE-CAS) and Chair of the China Solar Thermal Alliance.

Background; estimated future price versus actual in 2025

In 2012, the National Solar Thermal Industry Technology Innovation Strategic Alliance (referred to as the National Solar Thermal Alliance), under the commission of the National Energy Administration (NEA), collaborated with 18 domestic and international organizations to research and draft the China Solar Thermal Power Industry Policy Research Report.

This report analyzed a 50MW solar thermal power plant with 4-hour energy storage and a 25-year operational lifespan, estimating that by 2025, the feed-in tariff for solar thermal power in China would be optimistically 0.59 yuan/kWh.

The actual tariff of 0.55 yuan/kWh recently announced for a 100MW concentrated solar power plant in Qinghai is 6.7% lower than this projection.

Is the 0.55 yuan/kWh tariff the result of natural market trends, or was it the result of policy and technological advancements?

This alignment suggests that the 0.55 yuan/kWh price in 2025 is not a coincidence but a reflection of the technological and industrial development trajectory. It also confirms that under government guidance and industry efforts, China’s solar thermal power sector has developed in a sustainable direction, achieving the optimistic price scenario predicted in the 2012 report.

Chinese policy has been consistent since its 11th Five-Year Plan in 2006

Since the 11th Five-Year Plan, China’s research on solar thermal power generation technology and its equipment has developed rapidly. Now the Energy Law of the People’s Republic of China, which takes effect on January 1, 2025, explicitly sets the goal of “actively developing solar thermal power generation.” This precision provides a legal foundation for the industry’s growth.

The development of solar thermal power technology and industry has formed a model based on legal support, technological advancement, quality assurance, and market orientation. This approach is reflected in policy actions.

For example, among the factors outlined in Qinghai’s policy document, the Qinghai Provincial Development and Reform Commission’s notice on solar thermal power feed-in tariffs electricity pricing is a key concern:

This specifies that from 2024 to the end of 2028, solar thermal power projects in Qinghai Province, which have been evaluated and approved by provincial development and energy authorities, and are included in the annual solar thermal power demonstration (pilot) development plan, will have a feed-in tariff of 0.55 yuan per kilowatt-hour (including tax) from the date they commence commercial operation.

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