Chinese draft law will require grid to buy all renewable energy

• 14 years ago (2009-12-23)
• David Flin

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is considering a law that would require ’s grid companies to buy all the power produced by renewable energy. A draft of the law that was debated by the Standing Committee of the National People’s Congress would penalise companies for not buying electricity from renewable sources, fining them up to double the economic loss of the renewable energy producer. The law will also give supervisory power to the State Council’s Energy Department and the State Power Regulatory Agency to “determine the production of renewable energy power generation to the overall generating capacity for a certain period.”

The draft law has greater potential to encourage further development of renewable energy sources than a minimum purchase quota for renewable energy, under which grid companies have little incentive to exceed the quota.