Grid capacity

Companies in the solar power industry should work together to reduce their costs. The government is utilizing the bidding system to find out a reasonable price range, said Shi.

China's current grid capacity is another major problem damaging the growth of the new energy industry, according to many analysts.

For instance, electricity generated by many wind power plants in Inner Mongolia autonomous region cannot be connected to the grid, which makes a big waste of resources and hurts the industry, they said.

"The issues with the grid aren't expected to ease in the near term but should improve with the development of smart grid investment over time," said ERI's Li.

China will spell out clear strategies for developing smart grids in its 12th Five-Year Plan (2011-15) for the energy industry, as part of its steps to foster use of more clean energy.

The country's leading power grid operator, State Grid Corp of China, has already outlined its plans for smart grid development. The company will begin large-scale construction of smart grid projects from 2011 to 2015. A comprehensive system of smart grids, operating with cutting-edge technology, is likely to be set up in the country by 2020.

The State Grid Energy Research Institute and the global wind energy leader Vestas are now making a joint study on the coordinated development of wind power and the electricity grid. The research project brings together international experience coupled with local Chinese expertise to seek to develop an holistic tactical solution to solve the current grid challenges in China.

As a global player in the wind energy industry, Vestas has substantial experience in many different markets. As an integrated part of China's wind energy industry, it is important that the company uses its global experience to contribute to the further development of China's wind power industry, said Jens Tommerup, president of Vestas China.

(China Daily September 27, 2010)