Chinese solar cos call for delay on policy shift - report

Eleven Chinese solar companies have asked the government in a letter to delay the unexpected subsidy cuts and ease a cap on new capacity, Reuters, which has reviewed the letter, reported today.

Executives form the 11 firms, among which are Sungrow Power Supply Co Ltd (SHE:300274) and Canadian Solar Inc (NASDAQ:CSIQ), argue that the surprise June 1 announcement to withdraw support would damage the industry, which is already having financial difficulties.

The letter, which was first sent to Chinese news agency Xinhua, says that immediate enforcement of the measures would impact projects under construction. It calls for a grace period where needed.

China's National Energy Administration was cited as saying after the letter was published that it had met representatives of the solar sector. It is promising to accelerate the start of a quota system that requires regions to procure more renewable electricity.

The National Development and Reform Commission (NDRC) on Friday said that no new solar plants needing subsidies will be approved and set a cap of 10 GW for distributed generation projects. The policy changes are expected to curtail Chinese solar demand and cause a fall in solar module prices.

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