The project, requiring a total investment of RMB500 million, is designed to generate 16.37 million kilowatt hours of electricity annually. It has a licensed term of operation of 25 years.
The bidding price is very close to the on-grid price for wind power, which ranges from RMB0.51/kW to RMB0.61/kW for the 72 wind power projects approved by the National Development and Reform Commission in February 2008.
Still, technological plans for the demonstration project will have heavy weight on who will be the winner.
China will be able to realize one yuan/kW solar power cost within two years, an insider said.
The price of polysilicon has reduced from $300/kg to about $100/kg for the time being, resulting in the drop of solar power cost. Analysts expect the polysilicon price to reduce to $50/kg at the end of 2009 or 2010. In the long run, polysilicon price may be below $30/kg.
