1.4.4 China

The German Bank, KfW, which also administers the German solar energy program, confirmed its support of China's rural electrification program last month. Up to 170 villages in the regions of Xinjiang and Yunnan will receive electricity for the first time following the decision to install photovoltaic systems.

The KfW Bank has agreed to provide 10.2 million euro in total in support of the projects. Solar power will enable an improvement to the life style of the village inhabitants. They will be able in the future to have access to information media and electrical lighting. The electricity will also supply village schools and the rural health facilities. The funding originates from the German Federal Ministry for Economic Co-operation and Development.

The KfW Bank signed the loan agreement with the Chinese Treasury for over 5.1 million euro for the building of the solar systems in Yunnan on Mar 25, 2002 in Frankfurt, Germany. The contracts for the project in Xinjiang had been concluded in January. The KfW Bank also contributed 5.1 million euro to the project. The new solar systems will supply approximately 60,000 people with electricity. Solar conditions in the remote, western provinces of Yunnan and Xinjiang are ideal for photovoltaics.

1.4.5 Denmark

On Jan 29, 2002, the new liberal/conservative Danish government presented its draft budget for 2002 and future years.

All R&D programs, financial support, committees, and government agencies that for 20 years had been instrumental in the development of renewable energy were immediately cancelled or dissolved. The government planned to spend the money saved (20 million euros) on hospitals and senior citizens.

Most recently, however, the Danish Government has bowed to pressure from PV supporters by restoring $1.3M of funding to the SOL 1000 PV Roofs Program. At a subsidy level of 40% of installed costs, this is expected to support some 650 installations.

1.4.6 France

As of Mar 13, 2002, the Ministrie de l'Industrie et du Commerce approved a 0.15 euro ($0.13) / kWh PV feed-in tariff. A rebate of 4.60 euro ($4.00) /W is available against the cost of PV installations, but it is limited to a total of 1 MW per year for three years. In addition, overseas departments will be allowed the rebate for up to 1MW in year one, 2 MW in year two and 3MW in year three.

The feed-in tariff will decrease by 5% per annum from 2003. The scheme covers residential systems up to 5 kW, non-building systems up to 150 kW and commercial and public buildings up to 1 MW. The tariff has a value of 0.30 euro/kWh on Corsica and in the overseas territories.

1.4.7 Germany

In 2002, the tariff payable for solar electricity fed into the grid under the Renewable Energy Act has been reduced to 48.1 euro cents/kWh, 5% lower than last year. Federal Minister for Economic Affairs, Werner Mueller, has announced his desire to waive the 350 MW limit defined under this Act, allowing continued expansion of the federal PV program. This will require a legislative change in order to be implemented, however.

1.4.8 Italy

The PV funding program appears to be held up by bureaucratic delays in implementation. Over 7,000 requests were made in 2001 but no installations were either authorized or made. The 2001 budget of 57 billion ITL from the Ministry of the Environment and the regions is mostly unspent (equivalent to 3.8 MW). This carryover, plus new funding, means 52 million euros of funding should be available in 2002 (6.7 MW).

As of April 2002, approximately 5 MW was approved from 2001 tenders but none of it was installed. The maximum rebate allowed in the program is being reduced from 8.06 to 7.8 euros/W ($7.00 to $6.89), covering 70% rather than 75% of installation costs. In the roof program for public buildings, which received a grant of 20 billion ITL ($9M) in 2001, about 3MW had been approved and 3-400 kW installed by the end of April 2002.

1.4.9 Mozambique

The Energy Reform and Access Project's development objectives are to:

(a) accelerate, in a commercially viable manner, the use of electricity for economic growth and improved quality of life in underserved areas and, (b) strengthen Mozambican capacity to expand the energy sector for both domestic and export markets. It seeks to achieve these objectives by supporting the design and implementation of the Government of Mozambique National Energy Strategy that aims to reform the Mozambican energy sector and enable greater private sector participation in the sector.

The proposed project's global (GEF) objective is to start to eliminate the barriers that impede the development of renewable energy, particularly solar photovoltaic systems, in Mozambique.