Solar Energy has now reached grid parity in many parts of the world thanks to the low cost cheap solar panels being made by Chinese solar panel producers. But with many countries now thinking of putting an anti dumping duty on Chinese solar modules, the government is looking to boost domestic demand .
Chinese solar panel Tier 1 players like LDK, Suntech, Trina and Yingli besides some others are the biggest beneficiaries of this new solar policy from China.
China is looking to set up massive 1000 MW solar energy farms in its desert regions of Qinghai, Mongolia, and Tibet. Some of these regions have the highest solar radiation in the world with over 2,700 hours of sunshine. What this means is that solar power can be profitably generated at 8c/ Kwh. Though higher than coal-fired power, this price is constant for 30 years as gas and other forms of fossil fuels will continue to rise.
Worth noting is that these massive 1000 MW farms can now be built quickly as Chinese solar companies have massive capacity which can supply solar panels at a very cheap price of as low as 80c/ watt.
**Abhishek Shah is a computer engineer (NIT Warangal) and MBA (IIM Calcutta) by education with interests in technology, renewable energy and finance. He also writes about globalization, poverty, income inequality, corruption, and macroeconomics. By day, Abhishek works as an analyst with a green and technology focused investment fund.
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