ABSTRACT
In the discussion of interactions between renewable energy policy and renewable energy industrial policy, researchers have found with empirical evidences that there is a natural affinity between these two policies, with the improved competitiveness and capabilities of the manufacturers of renewable energy equipment, components and parts often resulting in price reduction of these facilities that leads in turn to lower costs for the installation and generation of renewable power (Zhang et al. 2013, 2). The cost of a solar cell, as noted in a Bloomberg article on 9 September 2013, was about 41 US cents a watt for the moment, down from US$1.46 in 2010 and about US$3 in 2004, which implied that it would be much more cost-effective for the Chinese government to subsidize domestic solar power generation than it would have done a few years ago. China Renewable Energy Industries Association (2011) projected that solar PV power generation could reach the grid parity as early as 2014, a point at which solar PV can generate electricity at a levelized cost that is less than or equal to the price of purchasing power from the electricity grid, and thus becomes a contender for widespread development vis-a`-vis conventional thermal power without government subsidies.
