China to raise clean energy subsidies to spur investment

• 11 years ago (2013-09-01)
• Junior Isles

Asia 892 Renewables 776

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From September 25th, China is to raise subsidies across the board for cleaner thermal generation and renewables, the state planning agency has said. The move is aimed at reducing emissions and helping thermal power plants meet tough new air pollution standards within the current pricing framework.

China’s power utilities have recently been lobbying the government for more subsidies, claiming they cannot afford to install new, cleaner equipment because fixed power prices deny them the ability to pass the cost on to consumers through raised prices.

The National Development and Reform Commission (NDRC) has indicated on its website that it will be raising subsidies for renewable generation from Yuan 0.008 to 0.015/kWh ($0.0013-0.025).

The NDRC will also raise subsidies for those thermal power plants that install equipment which cuts nitrogen oxide emissions and pollution down to mandatory levels, increasing the 0.008 yuan per kWh subsidy to 0.01 yuan.

Solar power subsidies will also see an unspecified increase, the NDRC said.

China’s National Energy Administration (NEA), a unit of the NDRC, had earlier launched an investigation into efforts by generators to install new pollution control equipment.

The investigation came after the Ministry of Environmental Protection accused several power firms of covering up the extent of their pollution and fraudulently claiming subsidies.