Page 202 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China

Researchers from Duke University found that air pollution for the first time, utility-scale costs for power fell below
鈥� specifically airborne particles that accumulate on solar $1/watt (Brew).
cells 鈥� could be cutting solar energy output by more
than 25 percent, causing billions of dollars of losses. Hydroelectric Power

China may be the hardest-hit area in the world because In 2016, China started construction of the first
of its rapid development. Maintenance is key. The panels hydropower station on the Jinsha River, part of the upper
the researchers examined showed a 50-percent uptick reaches of the Yangtze River. The project will supply
in efficiency from being cleaned after several weeks, but electricity to the economically well-off regions in the
cleaning solar panels is somewhat complex. Cleaning country鈥檚 east. The Suwalong hydro power project at
them incorrectly could damage the expensive structures. the junction of Mangkam County in Tibet and Batang
The Duke researchers found that most panels are covered County in Sichuan Province has a design capacity of
in about 92 percent dust and 8 percent carbon and ion 1.2 gigawatts and will be able to generate about 5,400
pollutants, particles from manmade pollution. In polluted gigawatts hours of electricity a year when completed
environments, ambient particles in the surrounding in 2021. The design capacity is more than doubling
air also block out sunlight and undercut solar panel that of the Zangmu hydropower plant, Tibet鈥檚 largest
efficiency. The researchers estimate that dry regions existing hydro project on the Yarlung Zongbo River,
such as Eastern China must be facing heavy losses in which was completed the previous year. The 18 billion-
solar efficiency鈥攍osses between 17 to 35 percent鈥� yuan Suwalong dam could pave the way for other
depending on how well they鈥檙e maintained (Gunaratna). projects in the headwaters of the adjacent Nu (Salween)
and Lancang (Mekong) Rivers to 鈥渇uel development鈥� of
Nevertheless, solar power has become big business hydropower in Tibet. The Suwalong project is expected
even in the private sectors. Xing Yiteng, Deputy Section to boost local social and economic development in
Chief in the New Energy Division at the National the region. Construction of the 112-meter-high dam is
Energy Administration claimed distributed solar-power expected to start in 2018. Developed by China Huadian
projects鈥攖he kind of solar found on industrial buildings, Corp, the Suwalong dam, however, is being built at a time
malls and schools鈥攁ccounted for almost 7 gigawatts, when the weak grid infrastructure and falling demand
a third of the new installations in the first half of 2017. for electricity has left many hydropower stations lying
Should China maintain the first half鈥檚 torrid pace of idle in the mountainous southwest region. In 2014, more
installations, the country would easily surpass the roughly than 20,000 gigawatts of hydro electricity were not used
30 gigawatts of new solar capacity it added in 2016. The in Sichuan and Yunnan Provinces, which neighbor Tibet.
continued expansion also extends China鈥檚 lead as the Energy experts estimated that enough water to generate
largest market in the world measured by the number of 40,000 gigawatts was simply allowed to run through
panels. China鈥檚 additions in the first six months of 2017 turbines in the region in 2015 (Li).
alone are equal to more than half of the total installed
solar base in the U.S. at the end of 2016, according to data China has firmly established itself at the forefront of
compiled by Bloomberg New Energy Finance (Shen). global hydropower development. In 2016, the country
increased its total installed hydropower capacity by over
鈥淣atural demand is ramping up along with declining 11.74 gigawatts to 330 gigawatts, representing more
solar costs and the improved returns of power stations,鈥� than a quarter of the world鈥檚 total. New development of
Alex Liu, China Utilities and Renewable Energy Analyst at domestic hydropower has slowed down as most major
UBS Securities, said in a note. The growth in distributed sites have been identified and explored, but China still
solar-power projects stands to help manufacturers, led commissioned more new capacity in 2016 than any other
by Jinko Solar Holding Co and Trina Solar Ltd, weather country. With the increasing development of variable
a slump in demand for bigger projects far from cities, renewables such as wind and solar, a strong emphasis
where a lack of grid connections and a flood of new is being placed on increasing pumped storage capacity
projects has prompted regulators to seek slower growth in order to improve stability in the grid. China鈥檚 13th Five
from that part of the industry (Shen). The non-residential Year Plan outlines a strategy to minimize reliance on
solar market has increased 29 percent year-on-year. The coal, and achieve a minimum share of 15 percent non-
growth comes as costs continue to fall. A report from fossil energy: specific targets include an additional 60
the Solar Energy Industries Association indicated that gigawatts of hydropower. The plan emphasizes better and

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