China to Adjust Its Policy for Distributed Generation System

At the China Solar International Conference 2014, an investigator from China’s National Development and Reform Commission (NDRC) revealed that National Energy Administration (NEA) is discussing the adjustment of policies for distributed generation (DG) system. One of the possible policies will be introducing Feed-in tariffs for DG systems.

According to the investigator, there may be three adjusting directions:

• Switching part of DG systems to large-scale ground-mounted PV stations and connecting to the public grid for Feed-in tariffs
• Assigning power companies as the third party supervisors to manage implements of energy policies or collect power fees to reduce exchanging risks
• Testing on PV financing platforms in Guangdong Province for local financing programs

NEA will visit Zhejiang Province to investigate issues about DG systems include low profits, lack of rooftops, difficulty of financing, risks of exchanging, failed grid-connecting, insufficiency of backup projects and long-term stability. In spite of investigating these issues, NEA will also hold conferences to discuss about adjustments for China’s goal of DG system installation for this year.