90 GW Solar & Wind Capacity For Chinese Grid In 2021

• NEA said China will grid connect a minimum of 90 GW solar and wind power capacity in 2021
• It will enable the 2 technologies to account for 11% of total electricity consumption this year
• For 2021, it has fixed RMB 500 million subsidy to be allocated to residential solar projects

The National Energy Administration (NEA) of China has confirmed the country would target to grid connect a minimum of 90 GW of solar and wind power capacity in 2021, the 1^st year of its 14^th-Five-Year Plan. However, it doesn't specify the exact share for both. In 2020, China's annual PV capacity addition was 48.2 GW, while wind installed a record level of 71.67 GW, taking their cumulative installed capacity till April 2021-end to 260 GW and 290 GW, respectively (see China Installed 48.2 GW Solar PV Capacity In 2020).

IHS Markit expects China to contribute over 60 GW PV capacity in 2021 out of a total global forecast of 181 GW (see IHS Markit Revises 2021 Solar PV Forecast To 181 GW).

Back to the NEA, it said primarily these projects will include wind power facilities approved before the end of 2020, cost competitive solar and wind power projects, and those that have cleared competitive rounds held in 2019 and 2020 having a capacity of about 9 GW and 10 GW. These projects need not participate in the government's tender rounds, and will be directly included in the scope of guaranteed grid-connected projects in various provinces.

Competitive allocation will be ensured by provincial level energy authorities for any grid capacity that remains to be added.

For residential solar power generation, the agency has fixed RMB 500 million ($77.6 million) as subsidy amount for the current year, and these are guaranteed to be grid connected by grid operators.

In a notice issued, the NEA said both these renewable energy technologies will account for about 11% of the country's total electricity consumption this year, increasing it annually to ensure all non-fossil fuel energy consumption in China at the end of the 14^th-Five-Year Plan would reach about 20% of primary energy consumption in 2025.

In April 2021, the NEA had sought stakeholder feedback for its draft document on solar and wind power generation in 2021 which mentioned a 16.5% share of these technologies in total power consumption by 2025 (see China Wants To Increase Solar & Wind Generation In 2021).

If there are more projects waiting for grid connection, over and above the guaranteed capacity for 2021, grid companies can accommodate those provided there is space available on the grid and the projects meet requisite conditions. In addition, the NEA plans to stock up more solar and wind energy for 2022.