Assessing Markets for Renewable Energy in Rural Areas of Northwestern China

There is a growing consensus that renewable energy will play an important role in future development programs. Despite this acceptance, few studies have been made on the emerging markets for renewable energy in most countries. This study examines the market potential for photovoltaic systems in the remote areas of China, especially in villages without access to grid electricity. The study estimates the size of the potential market for photovoltaic systems in four Chinese provinces. It provides important information on the characteristics, ability to pay, and preferences of potential customers. The report also details positive and negative experiences with existing photovoltaic systems, and it develops recommendations to increase the penetration of photovoltaic systems in rural China as part of the upcoming China Renewable Energy Development Project. The primary conclusion of this report is that households in remote areas have a need for electricity and that a potential market exists for photvoltaic systems in many of these regions.