China Tells Local Governments to Drop Protectionist PV Project Measures

China’s National Energy Administration (NEA) has ordered provincial governments to keep their solar power projects open to outside companies and avoid protectionist measures such as forcing PV project developers to source components from local PV enterprises.

The notice, issued on October 29 as part of wider recent efforts to standardize investment in PV power stations, also asked provincial governments to crack down on speculative transactions in which solar power project approvals are bought and sold between investors, driving up costs.
The notice said that PV power generation market in China has extended quickly since policies to support the PV industry were issued by the State Council in July 2013. In the process of project development, however, there appear to be lots of problems, such as unfair resource allocation, irregular project management and speculation. Therefore, aimed at solving all these issues, the notice standardizes the market in order to strengthen project management and to improve the investment and development environment for PV power stations.
As for those enterprises that conduct illegal transactions to earn money, they should be prohibited from investing in PV power projects for a fixed period of time.

Translated and edited by ReneSola. Source: China Government Procurement Network.