China to push domestic market to soak up oversupply
Both the State Council and the State Grid in China have confirmed the country's aspirations to create a 35GW domestic market in the hope of absorbing the overcapacity currently being witnessed in the global solar and PV markets. In a released statement the State Council aims to add an extra 10GW per year to meet the new target.
If this can be achieved it will be a boon for the entire global industry as the threat of cheap Chinese products flooding other markets would be greatly reduced and allow tier one Chinese companies to get on with their global efforts without the tarnished reputation that a flooded market has brought.
The news has not being greeted with universal approval and many analysts are stating that China lacks the infrastructure and network of subsidies to see such an increase. Most analysts are suggesting they may reach 21GW with this plan but 35GW may be a step too far. Of course many analysts have been wrong about China before and the news will be greeted with cautious optimism by most industry players.
China's energy suppliers have been reticent to join the renewable push as there is concerns the current national grid could not tolerate intermittent energy supplies.
