China, the world’s biggest carbon emitter, will pay 8.6 billion yuan ($1.4 billion) in subsidies for electricity generated from renewable power this year.
Regional financial authorities will allocate the funds to provincial and independent power-grid companies, according to a Ministry of Finance statement posted on the central government’s website. The government will provide 5.9 billion yuan for wind-power and 2 billion yuan for biomass-energy projects, with the rest subsidizing solar farms.
The move will bolster cash flows at renewable-energy developers as the grid companies are required to use the capital to pay the fixed and above-market tariffs of clean electricity output they purchased in 2012.
The world’s second-biggest economy is deploying energy generated from the sun, wind and biomass to help meet its target of cutting carbon emissions by 17 percent per unit of gross domestic product in its five-year plan through 2015. China wants to have 100 gigawatts of wind, 21 gigawatts of solar and 13 gigawatts of biomass power installed by 2015.