MoF Repeals Subsidies Promised for 39 PV Farms
The Ministry of Finance has pulled 39 demonstrative solar power projects from its "Golden Sun" PV subsidies program, Solarbe.com reported November 25. The cancelled projects, all approved for the program in 2009, have a combined installed capacity of 54MW and include projects by Suntech Power Holdings (NYSE:STP) and Canadian Solar (Nasdaq:CSIQ), the report said. Reasons for the cancellations vary from project to project, such as approval being denied to investors for a project, or a failure between investors and suppliers to reach agreement, the report said. Three Canadian Solar projects in Luoyang, Henan Province were removed from the program after construction stalled, and Suntech's planned 1.1MW building integrated PV (BIPV) project in Luoyang Normal University has been cancelled after the project was found to be "impossible to implement," the report said.
The government announced modifications to the original Golden Sun plan on September 21, stipulating that qualifying PV projects must have at least 20MW of installed capacity, of which first phase capacity can be no less than 10MW.