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China Sets $63 Billion to Pay Subsidies Owed to Renewables Firms

  • Payment would bring relief to solar and wind power developers
  • Plan is to pay off arrears this year using budget increase

China will use most or all of 400 billion yuan ($63 billion) added to a major government fund toward paying off debt subsidies this year owed to the country’s renewable power generators, according to people familiar with the matter.

The plan is to completely pay off the arrears this year to help strengthen renewable developers’ balance sheets and give a boost to the country’s efforts to peak and eventually zero out emissions, according to the people, who asked not to be named because the information isn’t public. Some preparation has already begun, including work to calculate total debt due to specific developers, one of the people said.