China's State Grid to help solar power producers-report

SHANGHAI Sat Oct 27, 2012 7:48am EDT

SHANGHAI Oct 27 (Reuters) - China's largest state-owned utility State Grid Corp will allow some solar power producers to connect to the national grid for free, in a bid to help the ailing solar industry, the official China Daily newspaper said.

State Grid said on Friday that from Nov. 1 it would provide a free connection service for so-called distributed photovoltaic solar power producers, or small- and medium-scale producers located near customers, the newspaper reported on Saturday.

China's export-focused solar panel industry has been hit by excess manufacturing capacity and waning foreign demand.

Companies are also facing anti-dumping tariffs in the United States while Europe could also impose import duties.

The cost for one network access point is 420,000 yuan ($67,200) and 10 points would be needed for a solar project of one megawatt, the paper said, citing Wang Sicheng, a researcher at the Energy Research Institute.

Chinese producers, including Suntech Power Holdings and Trina Solar, are increasingly turning to their home market, which has become one of the world's biggest, for solar energy development.

Last Saturday, the newspaper reported that China was working on policies, including subsidies and easier access to the grid, to help solar power producers expand in the domestic market.

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