In recent times, the government of China is attempting to encourage the distributed power generation. On June 19, 2013, the state council said that it will also be using small energy sources like solar panels and wind turbines. Premier Wen Jiabao led the meeting and said that the Chinese photovoltaic companies are struggling with serious overcapacity.
The government, in order to decrease the production of the industry, said that it will place limits on projects to produce polysilicon and solar modules. The biggest Chinese companies which manufacture photovoltaic modules have the capacity to produce 40 gigawatts worth of devices during 2013, however, all over the world there is only sufficient demand to support the production of 20 gW to 40 gW of products per year in 2012 and 2013.
In an attempt to help the industry to reduce its dependence on foreign markets, the government of China has promoted the use of distributed power generation. In a meeting that was held, the officials from the government urged the companies and communities to install photovoltaic solar power projects.
Meng Xian’gan, deputy director of the China Renewable Energy society said that the most important thing is to further expand the domestic market.