Politics
China Turns the Screws on Renewables Just When It Needs Them
- Government proposes auctions for new solar, wind licenses
- Shares of developers fall as proposal seen squeezing profits
This article is for subscribers only.
After shortchanging renewable energy developers for years to the point where it owes billions of dollars in unpaid subsidies, the Chinese government is now proposing that those companies may have to cancel part of the debt if they want to keep building new projects.
Under a draft plan by the country’s National Energy Administration, provinces would auction off grid capacity for new wind and solar projects, with at least one third of the contracts going to developers who were prepared to give up money owed to them by the government, according to people familiar with the proposal. The winning bidders would get a guaranteed rate for their power.