Climate Changed
China Plans Subsidy-Free Solar and Wind Projects
- Tariffs for pilot projects will be same or lower than coal
- Grid companies will sign long-term power purchase contracts
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China will start building pilot wind and solar power projects that won’t receive national government payments as it pushes to improve the competitiveness of renewable energy and rein in subsidy bills. Shares of solar manufacturers surged in New York and Hong Kong.
Power prices from these pilot projects will be the same or lower than from coal-fired plants, the National Development & Reform Commission said in a statement laying out the policy on Wednesday. Subsidy-free plants may be exempt from participating in some power market transactions and will sign long-term power purchase agreements with grids at fixed tariffs, it said.