China to further reduce the subsidies of renewable energy sources in the push of market reform
The top economic planner from China said on Sunday that it would reduce some renewable energy subsidies in reforms that are intended to open the flowering sector for market forces.
In recent years, China has tried to reduce the support of the government for renewable energy companies, since the sector reaches critical mass.
It installed a record quantity renewable energy last year and has already surpassed a target to have installed at least 1,200 gigawatts of solar and wind capacity in 2030.
New projects for clean energy that were completed after 1 June must sell electricity at rates that are determined by the market rather than at preferential rates used to support the Chinese energy transition, said the National Development and Reform Commission (NDRC) In a statement.
The NDRC insisted on energy producers to “promote the participation of Clean Energy in market transactions”.
The committee also said that “electricity providers and buyers of electricity encourage multi -year purchase agreements and to manage market risks preventively”.
According to the International Energy Agency, Beijing invested more than $ 50 billion in new solar delivery capacity from 2011 to 2022.
It has built up almost twice as much wind and solar capacity as any other country, according to research published last year.
However, the Chinese grid is struggling to keep track of.
The renewable delivery is increasingly blocked to prevent the schedule from being overwhelmed, a process known as a limitation.
Over the past decade, Beijing has rolled out a series of measures aimed at weaning providers of renewable energy consumers of financial support from the state.
The ended subsidies for new solar energy plants and onshore wind energy projects in 2021.
