China's distributed power generation industry will reach a market value of 10 trillion yuan ($1.6 trillion) and create indirect business opportunities worth about 30 trillion yuan, said Li Hejun, a member of the National Committee of the 12th Chinese People's Political Consultative Conference and chairman of the China New Energy Commerce Chamber.

"I suggested the country should encourage applications of distributed solar power generation projects during last year's conferences," said Li on Thursday. "The government carried out policies to make my suggestions come true in December and I felt really glad."

As chairman of Hanergy Holding Group, Li said his company is working on a distributed thin-film solar power generation project in its headquarters in Beijing.

"The project will have an installed generation capacity of 2 to 3 megawatts," he said. "The electricity produced by the project will be able to meet the needs of up to 1,000 employees in the building after it is completed in June or July."

He added that the company is in talks with the Beijing municipal government to develop distributed power generation projects in the city, but he declined to give more details.

On Dec 19, the State Council, China's cabinet, said that the government encourages distributed power generation of solar power and small energy sources including wind, natural gas and bio-energy.