A major year-end sprint for photothermal energy
By the end of 2025, on the vast deserts and plateaus in the northwest of China, a "grid - connection sprint" against time is simultaneously taking place in multiple solar thermal projects.
In late November, the 100 - megawatt (MW) solar thermal part of the Dunhuang "Solar Thermal +" integrated project of China National Energy Group fully entered the installation stage.
In Xinjiang, at the beginning of November, the concentrating and heat - collecting system of the 100 - MW solar thermal part of the Datang Shichengzi 1 - million - kilowatt "Solar Thermal + Photovoltaic" integrated project was completed and transferred to commissioning. Also in November, 94% of the heliostat installation of the 100 - MW solar thermal project of Xinhua Power Generation in Bortala Prefecture was completed, and it fully shifted to subsystem commissioning, aiming for grid connection by the end of December.
The 100 - MW solar thermal project of China Three Gorges Energy's Qinghai DC Phase II achieved full - load stable operation multiple times in November.
Behind this wave of sprints are multiple green lights for the development of solar thermal power at the policy level.
On November 25, the Development and Reform Commission of Xinjiang Uygur Autonomous Region issued a notice, clearly stating that the priority hours of national demonstration solar thermal projects will be guaranteed for acquisition as approved.
On November 28, the list of the first batch of pilot projects for direct connection of green electricity released by the Development and Reform Commission of Qinghai Province included solar thermal projects.
In November, the "Detailed Rules for the Bidding of the Sustainable Development Price Settlement Mechanism for Incremental New Energy Projects in Hainan Province" issued by the Hainan Electric Power Trading Center clearly stated that solar thermal projects with a confirmed electricity price before June 1, 2025, are not included in the scope of the main bidders for the mechanism electricity price.
A person from the Development and Reform Commission of Hainan Province told Economic Observer, "The core consideration (of this detailed rule) is to provide guarantees for projects with early - defined investment expectations. For a group of solar thermal projects with determined technical routes and business models, the certainty of basic earnings has also been guaranteed."
More crucial top - level design also landed in November. The "Guiding Opinions on Promoting the Consumption and Regulation of New Energy" (hereinafter referred to as the "Guiding Opinions") jointly issued by the National Development and Reform Commission and the National Energy Administration in that month clearly proposed for the first time at the national level that solar thermal power generation can realize its peak - shaving value through auxiliary services, capacity prices, etc.
A series of intensive project promotions and policy implementations indicate that solar thermal power generation, once troubled by cost and technical problems, is finding its position in the strategic need of building a new power system by virtue of its long - term energy storage and synchronous generator characteristics, and moving from demonstration and exploration to a new node of large - scale development.
Economic Observer learned in interviews that the acceleration of solar thermal projects is not all smooth sailing. The high initial investment cost and the still insufficient reliability of equipment are the key problems that need to be solved for the large - scale development of the industry.
The above - mentioned person from the Development and Reform Commission of Hainan Province told Economic Observer that even with policy support, how to achieve a fundamental leap from policy - driven to economy - driven development tests the long - term sustainable development ability of the industry.
Grid - Connection Sprint at the End of the Year
In late November, at the project site of Datang Shichengzi in Hami, Xinjiang, an enterprise engineer in charge of commissioning told Economic Observer on the phone, "Now is the most critical commissioning sprint period. Everyone is working non - stop, with the goal of achieving grid connection before the end of the year."
On November 17, the project just completed the key node of steam purging. Also in Xinjiang, the Bortala Prefecture project of Xinhua Hydropower Generation Co., Ltd. aims for grid connection through reverse power transmission by the end of December.
The "battlefield" in Qinghai is also hot.
The 100 - MW solar thermal project of China Three Gorges Energy's Qinghai DC Phase II achieved full - load stable operation multiple times in November, marking the progress of this landmark project from being built to being stable.
Earlier, on September 25, the solar thermal part of the Qinghai - Henan DC transmission project in Hainan and Haixi bases in Qinghai started the salt - melting work of high - temperature molten salt storage tanks and entered the critical stage of thermal system commissioning.
In Tibet, at a higher altitude, project construction carries more significance. On November 20, a group of cadres from the Nagqu Municipal Party Committee went to the 100 - MW solar thermal + 800 - MW photovoltaic integrated project in Tushuo, Amdo County, Tibet, invested by Tibet Investment and Development Co., Ltd. for research. The heat - absorbing tower of the 100 - MW solar thermal part of the project exceeded the 100 - meter concrete cylinder wall construction height on September 21.
A relevant person in charge of the Energy Bureau of Tibet Autonomous Region once publicly stated that in regions like Tibet with a fragile ecological environment and a weak power grid, the stable output and energy - storage characteristics of solar thermal power generation have strategic value for ensuring power supply and reducing dependence on fossil energy.
Liu Xin, a person from an energy central enterprise, analyzed that behind this wave of sprints, there is a clear logical main line: since the third quarter of 2025, from the national to the local level, the recognition and support policies for the position of solar thermal power in the new power system have become increasingly clear. Especially the issuance of the national - level guiding opinions in November opened up the market channel expectation for the value realization of solar thermal power.
In Liu Xin's view, this has greatly boosted the enthusiasm of enterprises to complete the main project before the end of the year and lock in policy benefits. At the same time, the effective construction window period in the western region is about to close due to the severe cold. Completing outdoor installation and key commissioning before winter is a practical need to ensure the project schedule.
According to the statistics of the "Blue Book of China's Solar Thermal Power Generation Industry 2024", as of the beginning of 2025, there were more than 30 solar thermal power generation projects under construction in China, with a total installed capacity of about 3.1 million kilowatts. Now, a considerable part of these projects are converging at the time node from the end of 2025 to the beginning of 2026, trying to transform blueprints, steel, and cement into real grid - connected power generation capacity.
Experts from PowerChina Northwest Engineering Corporation Limited, which leads the market share in the field of solar thermal design, once analyzed in an interview with industry media that from 2025 to 2026 will be the verification period for the concentrated commissioning of the first batch of large - scale "Solar Thermal + New Energy" integrated projects in China. Their actual operation effects will have a profound impact on the subsequent development of the industry.
Hard Nuts to Crack
Although the policy is favorable and the projects are in full swing, Economic Observer learned after contacting multiple solar thermal projects that the high cost and the challenge of equipment reliability are still hard nuts to crack for the industry.
Liu Haichao, the person in charge of an enterprise participating in the EPC (Engineering, Procurement, and Construction) of solar thermal projects, told Economic Observer, "The cost is still about three times that of photovoltaic power generation. This is one of the most realistic thresholds."
According to the data in the "Blue Book of China's Solar Thermal Power Generation Industry 2024", the unit kilowatt cost of a 100 - MW tower - type solar thermal power station with 8 - hour energy storage is currently between 12,000 and 17,000 yuan. In contrast, the unit kilowatt cost of large - scale photovoltaic power stations in the same period has generally dropped to 3,000 to 4,000 yuan, showing a significant cost gap.
Behind the high cost is the characteristic of a technology - intensive and material - intensive industry.
The person in charge of a state - owned enterprise in charge of solar thermal project procurement gave an example: "It seems that the localization rate has exceeded 95%, but for some of the most core components under the most severe working conditions, we still prefer imported brands in our hearts, even if they are expensive and the delivery period is long."
He explained that imported key equipment such as high - temperature molten salt pumps and valves have high procurement and maintenance costs, and the delivery cycle is greatly affected by the international supply chain. However, in order to ensure the reliability of the power station's first - year operation, this choice has to be made sometimes.
This extreme pursuit of reliability is magnified in project sites with harsh natural conditions.
In Amdo County, Tibet, with an altitude of over 4,700 meters, it is cold and lacks oxygen, and the annual effective construction period is short. The construction party not only needs to deal with special technical problems such as concrete curing but also needs to configure extremely thick insulation layers for all equipment and pipelines and solve the anti - freezing problem under extremely low temperatures. All these directly drive up the construction cost and increase the uncertainty of the construction period.
The team of the above - mentioned person in charge of solar thermal project procurement estimated that at present, the levelized cost of energy (LCOE) of solar thermal power is still above 0.7 yuan per kilowatt - hour, which is two to three times the cost of photovoltaic power in the same period. This means that in the current power market environment, without an additional compensation mechanism for its peak - shaving, energy - storage and other system values, it will be very difficult for solar thermal power stations to participate in market - oriented competition.
The "Guiding Opinions" of the National Development and Reform Commission and the National Energy Administration on November 10 pointed out the value realization paths such as capacity prices and auxiliary services. However, there are no mature detailed rules and market price formation mechanisms on how to quantify, trade and determine the income. Many interviewed industry insiders pointed out that the "Guiding Opinions" is a top - level design framework, and the specific implementation rules such as trading rules and compensation standards need to be explored and clarified in the subsequent construction of the power market in various regions.
Therefore, the current acceleration of solar thermal projects still largely depends on the policy - based allocation under the "integration" model and the local government's demand for improving the regulation ability of new energy bases. Another person participating in the construction of a solar thermal project of China General Nuclear Power Group analyzed to Economic Observer that enterprises are facing a complex equation: on one side is the visible but huge initial investment and operation and maintenance cost, and on the other side is the long - term value return that is not yet fully clear but full of expectations.
Exploring the Way
The official recognition of the role of solar thermal power as a "system regulator" at the policy level and the diverse mechanism explorations at the local level are exploring a new path for the development of solar thermal power different from simple electricity price subsidies.
The most breakthrough top - level design comes from the "Guiding Opinions" of the two national ministries on November 10, 2025. This document clearly states that "solar thermal power generation can realize its peak - shaving value through auxiliary services, capacity prices, etc."
Wang Zhifeng, a researcher at the Institute of Electrical Engineering of the Chinese Academy of Sciences and the chairman of the National Alliance for Technological Innovation in Solar Thermal Industry, believes that this is equivalent to justifying the value of solar thermal power at the national level and "giving it a household registration". The profit model of solar thermal power generation will shift from mainly relying on power generation income to a dual - track system of "power energy income + regulation service income".
Behind this transformation is the practical consideration of the demand side of the power system. Yang Kun, the Party Secretary and Executive Deputy Chairman of the China Electricity Council, once publicly stated that with the sharp increase in the proportion of wind and photovoltaic power, the demand of the power grid for flexible resources has increased sharply. Solar thermal power plays an important role in enhancing the regulation ability of the power system and supporting the safe and stable operation of the power grid.
At the local level, more specific and differentiated explorations have been carried out.
The "Notice on the On - grid Electricity Price Policy for Solar Thermal Power Generation in Qinghai Province" issued by Qinghai Province clearly states that from the period of 2024 to 2028, the on - grid electricity price of independently - built solar thermal demonstration projects will be implemented at 0.55 yuan per kilowatt - hour, and they will not participate in market - oriented transactions. This provides a stable price anchor for attracting more solar thermal investment in Qinghai.
Currently, solar thermal projects are mainly divided into two models: "integrated supporting construction" and "independent construction", and national and local policies are providing classified support accordingly. The Datang Shichengzi and China Three Gorges Hami projects mentioned in the article are typical "integrated supporting" models, that is, in large - scale new energy bases, solar thermal power is used as a regulating power source and developed together with wind and photovoltaic power. This model is the mainstream of current project promotion.
Inner Mongolia took the lead in issuing the "Detailed Rules for the Implementation of Solar Thermal Power Generation and Wind - Photovoltaic Power Generation Integrated System Projects" in the country, which details the configuration ratio, peak - shaving ability and technical standards of "Solar Thermal + New Energy" integrated projects. It even innovatively allows the configuration of a supplementary combustion system with a power generation capacity of no more than 10% to ensure power output in extreme cases, but requires the carbon emission intensity to be no higher than 100 grams per kilowatt - hour.
New Considerations
Enterprises are also exploring new possibilities.
Economic Observer learned that the 1 - million - kilowatt "Solar Thermal + Photovoltaic" integrated project of China Three Gorges Group in Hami, Xinjiang, achieved full - capacity grid connection in September 2025. The "linear Fresnel" solar thermal technology it uses, which does not require the construction of a tall heat - absorbing tower and has a higher degree of modularization, is considered to have potential in reducing construction and maintenance costs.
At the same time, for newly approved projects in Qinghai, Gansu and other places, the single - unit scale has generally increased from the early 50 MW to 100 MW or even planned to be 350 MW, further reducing costs through large - scale development.
A solar thermal equipment enterprise in Jiangsu in the industrial chain focuses on the research and development of cutting - edge technologies such as the "new - generation ultra - high - temperature molten salt energy - storage system", trying to promote technological iteration and cost reduction from the core component link.
Liu Haichao said, "In the future competition, it is not about which is cheaper between solar thermal and photovoltaic power, but about which can provide more stable and high - quality power services for the power grid at a lower system cost, 'Photovoltaic + Battery Energy Storage' or 'Solar Thermal (with built - in energy storage)'."
From the policy interface in Hainan, to the priority power generation in Xinjiang, to the fixed electricity price in Qinghai and the integration detailed rules in Inner Mongolia, different support paths all point to one goal: to find a commercial value foothold for the technical value of solar thermal power.
While the intensive introduction of new policies injects a shot in the arm for the industry, a real problem emerges: Will this trigger a round of over - investment divorced from reality? From the perspective of policy - makers and industry observers, the current encouragement policies already contain prudent considerations to prevent disorderly expansion.
The National Energy Administration clearly stated in a reply to a proposal in August 2025 that it will "reasonably arrange relevant development layouts" in the renewable energy development plan for the 15th Five - Year Plan period. This tone indicates that the policy promotes "large - scale development" that matches the power grid's consumption capacity and the pace of technological progress, rather than a bubble - like rush.
In addition, the extremely high technical and financial thresholds, the long construction period of solar thermal power generation projects, and the current situation of continuous dependence on policy support constitute a natural "filter".
Data from the National Energy Administration shows that the installed capacity of solar thermal power generation in China in the first half of 2025 was 1.52 million kilowatts. The industry is in a critical climbing period from demonstration to large - scale development, rather than an over - heated period with low thresholds.
Liu Xin believes that although solar thermal power development still faces problems such as cost, the direction is clear. Solar thermal power is no longer just an option for power generation but also a service provider in the new power system.
Regarding the question of "Does the new policy mean that the price of solar thermal power can be raised?", several people participating in the construction and operation of solar thermal projects once told Economic Observer that the core of the new policy is to create a value realization channel for solar thermal power, rather than simply raising the price. With the "Guiding Opinions" clarifying compensation mechanisms such as capacity prices and auxiliary services, the comprehensive income of solar thermal projects is expected to be improved. However, this depends on the implementation of subsequent local detailed rules and the formation of market trading prices.
A person participating in the integrated solar thermal