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China raises 2015 solar installation target by 30% to 21.3 GW

China has decided to raise by 30% its solar power installation target for 2015, from an earlier national target of 17.8 GW, to 21.3 GW (+5.3 GW). The new power projects are expected to be developed in Inner Mongolia and Hebei (northern China) and in Xinjiang (western China). The National Energy Administration (NEA) requires the project developers to complete construction by the end of 2015 and to get connected to the grid by the end of June 2016.

Many solar power projects fail to deliver power due to insufficient grid capacities, which have curtailed the growth of the solar sector; raising the 2015 target could potentially add to overcapacity. In the first half of 2015, 7,730 MW of solar capacities were installed, which would be only 1/3 of the new target. China aims to raise the share of non-fossil fuels in its energy mix from about 11% in 2014 to 15% by 2020, and to cap CO2 emissions by 2030.

The Central Bank of China estimates that the country must invest between Cyu 2,000 bn and Cyu 4,000bn (US$315bn to US$630bn) every year in green technologies over the next five years.

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