China’s Solar Additions Slow Further as Developers Stay Cautious

(Bloomberg) -- China’s solar installation continued to slow in July, as developers remained cautious waiting for more details about a new policy that took effect in June and may affect renewable returns. 

The country added 11.04 gigawatts of solar last month, down from 14 gigawatts in June, according to data released by the National Energy Administration. The monthly additions continued a downward trend that started in June, after a record high of 93 gigawatts achieved in May ahead of the policy changes.  

After an installation rush in the first half of this year, renewable power developers are now holding back on investments in new projects. The new policy mandates renewable electricity to be traded in volatile wholesale power markets. Provincial governments are still working on how to implement the rules at the local level, which could provide some certainty about the revenue developers can earn.  

Delays in investment decisions by developers could result in a sharp slowdown of solar additions in the third quarter, potentially falling to half the volume installed in the same period of 2024, according to BloombergNEF. 

In addition, China added 2.28 gigawatts of wind power in July while thermal power installation stood at 16.2 gigawatts.

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