Table 3 A summary of the key events driving urban transition trajectories in Foshan, Wuxi, and Rizhao
Cities | Phases | Key events | Outcome |
|---|---|---|---|
Foshan | Breakthrough | • Sanshui Industrial Park was designated as a national demonstration zone for distributed solar PV in 2013 • Introduction of the national solar FIT and the Guangdong Solar PV Power Generational Development Plan in 2014 • The municipal government introduced a FIT of RMB 0.15/kWh and a direct subsidy (RMB 1/W) on installed capacity • Village committees piloted solar projects in urban villages • Market agents developed new business models for solar products and services | • Emergence of new business models • Emergence of a niche market • Cost gap narrowed due to subsidies • Initial public interest |
Acceleration | • The number of installed solar PV went from less than a dozen in 2015 to 763 by the end of 2016 • Payback periods were reduced from 15 to 8 years in the period from 2015 to 2016 • The proliferation of new business models • Grid companies and their local subsidiaries in Foshan provided enhanced services to connect PV systems to the grid | • Market expanding, but remains a minor share • Technologies approaching cost-competitiveness • Diverse and rapid growth of business models • Increasing acceptance by utilities and communities | |
Wuxi | Breakthrough | • In 2001, Sun-tech was founded with the support of local government. • A solar power industry cluster started to form. | • Emergence of business models • Initial public interest |
Acceleration | • In 2007, the blue algae outbreak in Taihu Lake posed an environmental and public health crisis that reverberated throughout the city and triggered political support for the development of clean energy. • In 2008, the municipal government required the mandatory installation of SWHs in all new housing buildings under 12 floors • Wuxi Taihu New Town was designated as a ‘national demonstration zone of low-carbon eco-cities’ in 2009 • From 2010, Wuxi implemented a ‘4610’ plan (four policies to accelerate 6 technologies in 10 demonstration projects) | • Market expansion due to policy support, but remains a minor share • Increasing public interest | |
Stabilization | • The total solar power generation reached 90 MW in 2015 • By the year 2016, over 100 core solar enterprises had clustered in Wuxi • In 2016, the roof area with installed SWHs and distributive PV stations in Taihu was over 1.6 km2 | • Mass market exists • The supply chain is well established • Consolidation of the industry structure • Increasing interest in ‘greener’ lifestyles | |
Rizhao | Predevelopment | • The emergence of sporadic grassroots experiments in early 1980s due to social needs | • Costs remain high due to lack of economies of scale • Initial expert interests |
Take-off | • The technology to produce SWHs with evacuated glass tubes was developed in 1984 | • Technology is feasible but high-cost gap remains • Growing expert interest in technology | |
Breakthrough & Acceleration | • In the early 1990s, subsidies were provided to local solar firms • Leading enterprises started to produce complete machines of water-in-glass evacuated tube SWHs at a large scale in late 1990s | • Emergence of new business models and companies • Technologies are progressively approaching cost-competitiveness • Rapid pace of cost reduction due to market expansion and penetration • Increasing acceptance by utilities and communities | |
Stabilization | • Till the early 2000s, more than 70% of the urban households using water-in-glass evacuated tube SWHs • The introduction of the mandatory installation of SWHs in 2007 • The extension of the mandatory installation of SWHs to high-rise buildings in 2010 | • Technology is mature • Mass market exists • Cost-effective due to economies of scale • Widespread acceptance by communities • Technology becomes a part of people’s daily lives |