China selects 642 MW solar power capacity for subsidy

BEIJING, Nov 16 (Reuters) - China has identified 294 solar power projects with total generating capacity of 642 megawatts ( MW) in its first pilot programme.

Beijing has said it will subsidise at least half of the investment cost.

The capacity will be nearly 30 percent more than the minimum target Beijing set in July when it launched the unprecedented "golden sun" plan, which was part of China's drive to catch up in a global race to find alternatives to fossil fuels.

These projects were expected to cost around 20 billion yuan ($2.93 billion) and be ready for use in two or three years, the Ministry of Finance said in a release on its website (www.mof.gov.cn).

Of the projects, 232 with total generating capacity of 290 MW will be constructed by major industrial and commercial firms and the power output would be consumed by themselves.

Twenty-seven independent photovoltaic power generating projects, with total capacity of 46 MW, will be built in remote regions that have no power supply. The projects were expected to generate enough power to meet demand for more than 300,000 residents in the regions.

The remaining 35 projects, with total capacity of 306 MW, would be utility-scale plants, whose power output would be fed into grid networks.

The finance ministry also laid out specific price and quality requirements for parts and components in the qualified solar power projects, but it did not provide project names or where they are located.

The Ministry of Finance had said the government would subsidise 50 percent of investment for solar power projects as well as relevant power transmission and distribution systems that connect to grid networks, 70 percent of cost for independent solar projects in powerless regions.