China Raises Target for 2015 Solar Power Capacity (to 35 GW)

http://online.wsj.com/article/SB10001424127887323394504578607661315542072.html

BEIJING—China raised its 2015 target for solar-electricity capacity, giving a shot in the arm to solar companies that are struggling because of industry overcapacity, weaker global demand and overseas trade disputes.

Installed capacity for solar electricity should reach more than 35 gigawatts by 2015, up from about seven gigawatts last year, China's State Council said in a statement posted Monday but dated July 4. China's previous target was 21 gigawatts.

The move means Chinese solar companies will become eligible for more domestic projects. Chinese solar companies, who provide more than half the world's solar panels, in recent years have been hit by fierce competition, falling prices for solar equipment and a slowdown in financing for projects in Europe and the U.S.

"China's solar industry is facing widespread operating difficulties," the State Council said. "Global demand for solar power has slowed, product exports are facing heavy resistance and the growth of the solar industry is uncoordinated," it said, citing "severe overcapacity."

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