• Print

Chinese government doubles renewables surcharge

China’s National Development and Reform Commission (NDRC) has revealed that the government is doubling the surcharge for solar and other renewables from CNY0.004 to CNY0.008 per kWh. The tariff was raised to cover the premium that utilities pay for renewable electricity and is effective as of December 1.

The move to raise the surcharge rate has considerably boosted the medium-term outlook for solar in China and led to notable stock market jumps for Suntech, JA Solar, Yingli Green and several other Chinese PV firms. Increased developer confidence will also spark further growth downstream, helping the country move closer to achieving its long-term renewable goals.

"This is not going to increase the premium paid to renewable energy projects, although it will double the pool of money used to support clean energy," CIMB Research analyst Keith Li said.

The surcharge doubling is the latest legislative measure taken by the Chinese Government to help achieve its ambitious goal of increasing the proportion of non-fossil fuels in its coal-dependent energy portfolio to 15% by 2020. In 2006, China passed a renewable energy law requiring power distributors to buy all the power generated by renewable energy projects. These regulations also allow them to collect additional fees when they sell the power.

PV-Tech Storage Promo

Newsletter

Preview Latest
Subscribe
We won't share your details - promise!

Publications

  • Photovoltaics International 26th Edition

    Looking back, 2014 was a year of convalescence for a PV industry still battered and bruised from a period of ferocious competition. End-market demand continued apace, with analysts towards the end of 2014 predicting the year would see between around 45 and 50GW of deployment. That has begun to feed through to the supplier end of the market, with all the main manufacturers announcing capacity expansions in 2015 and further ahead.

  • Manufacturing The Solar Future: The 2014 Production Annual

    Although the past few years have proved extremely testing for PV equipment manufacturers, falling module prices have driven solar end-market demand to previously unseen levels. That demand is now starting to be felt by manufacturers, to the extent that leading companies are starting to talk about serious capacity expansions later this year and into 2015. This means that the next 12 months will be a critical period if companies throughout the supply chain are to take full advantage of the PV industry’s next growth phase.

Partners

Acknowledgements

Solar Media