Waregem, Belguim [RenewableEnergyWorld.com] A 10-megawatt (MW) franchised demonstration PV project in Dunhuang City, in northwest China’s Gansu Province has had its on-grid electricity price fixed at ¥1.09 per kilowatt-hour (kWh) [€0.113/kWh], an authority from the National Energy Administration has revealed.
China`s largest and first PV power station, the Dunhuang project involves an investment of ¥200 million [€27 million], with an estimated annual power production of 16.37 GWh. A joint bidding team, led by Belgian developer Enfinity together with CGNPC and LDK Solar won the project contract and a franchised operation term of 25 years.
In late March 2009, the Chinese National Development and Reform Commission (NDRC) launched an open tender to confirm the on-grid electricity price and technical parameters. A total of 13 enterprises, including major domestic power giants entered the bidding process, with tender prices ranging from ¥0.69/kWh [€0.071/kWh] to ¥1.9/kWh [€0.196/kWh]. Enfinity and its partners won the bid with a price of ¥1.09/kWh.
“The project is expected to start construction within 4 months and has to be completed within the 18 following months,” commented Gino Van Neer, founder of Enfinity. All PV systems will be PV tracker panels, installed on land. Enfinity is in the process of setting up the Dunhuang joint venture company and confirming the EPC contract. In the near future Enfinity will develop a total of 500 MWp of PV installations in the Dunhuang region.
NDRC of China also intent to set up a benchmark FIT (Feed in tariff) at the 1.09 yuan/kWh level that Enfinity proposed.