China has been urged to increase its solar power capacity by industry groups to plug the projected hydropower and nuclear shortfalls. Furthermore, this is the need of the hour as the nation experienced recently currency devaluation that could actually provide a boon for exports of solar products but negatively impact the European Union.
The three key industry groups in the country have asked the government to double their target for solar power to 200 gigawatts by end of 2020. According to the industry groups, this will help to fill the predicted gap in China’s energy capacity by 2020. Furthermore, the forecasts for nuclear and hydropower state that these two sectors will miss their targets for 2020. Hence, solar energy sector can help to cover up this shortage. According to the China Photovoltaic Industry Association, solar power sector is in the prime position to meet this projected shortage. Other industry groups such as the China Renewable Energy Society and the Chinese Renewable Energy Industries Association have also encouraged this idea.
Presently, China has around 33 gigawatts of solar photovoltaic capacity installed and the National Energy Administration has targeted an extra of 17.8 gigawatts of solar energy deployment in 2015. This association’s wider target for the year 2020 is around 15 per cent of the country’s energy to be delivered by renewable energy, which is a growth of 11 per cent of the target last year.
Recently, China experienced a devaluation of its currency, the Yuan. This was experienced for the second day running. This second devaluation experienced a currency hit of a four year low. The concerns about the financial markets were that the nation is about to witness currency war and the solar sector was viewed as a strategy designed to enhance the attractiveness of the nation’s exports and optimize the borrowing costs of the key domestic solar companies.