Located in northwest China, Qinghai in 2014 had a nominal GDP of $37bn and contributed a relatively modest 0.3% to the country’s overall economy. However, as of year-end 2014, Qinghai had China’s second largest base of installed solar PV capacity with 4.1GW, after only Gansu province.
Compared with other coal-reliant provinces in China, Qinghai has a distinctively large proportion of clean energy. By the end of 2014, zero-carbon power generating capacity inclusive of large hydro contributed 87% to total installed capacity, while coal accounted for a mere 13%. In terms of actual generation, 68% of the total 60TWh power produced in Qinghai came from large hydro. The balance was supplied by other renewables (10.5%) and coal (21%).
Given Qinghai’s abundant solar and land resource, the local solar PV industry has grown significantly during the past five years. Installed PV capacity has grown at an annual rate of 30% since 2010.
In 2012, the Qinghai government released its 12th Five-year Plan for New Energy Industrial Development and pledged to support clean power generation growth and the expansion of a local lithium-ion battery manufacturing base. In fact, Qinghai has experience deploying systems combining off-grid solar panels and lithium-ion batteries dating all the way back to the late 1970s. The main purpose of the new efforts was to improve electricity access in Qinghai’s rural areas. The program was sponsored by the central government, but has recently been suspended as significantly improved grid infrastructure has made it less necessary.