China has revealed its initial subsidy limits for existing renewables projects in 2022, however it remains to be seen whether the funding is to be topped up.
Earlier this week China’s Ministry of Finance set out its first tranche of funding for existing renewable projects for the forthcoming year, making RMB3.87 billion (US$607.3 million) available. Of that total, RMB2.28 billion (US$357.2 million) has been set aside for solar PV projects, with RMB1.55 billion available for wind.
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At RMB2.28 billion, the rate available in 2022 is a marked decrease – down 32.6% – on the RMB3.384 billion made available for projects last year. However it is as yet unclear whether the finance ministry intends for this to be the full sum available in 2022 or whether the pot will be topped up at a later date.
A note issued by the finance ministry establishes the priority for subsidies to be paid by power grid companies in the country according to official fund management measures, as per the usual process.
All funds are to be allocated to generators included in China’s list of projects, with priority given to national PV projects that are alleviating poverty and so-called ‘Top Runner’ projects confirmed by China’s central government.
Half of the total subsidy payable to these projects is to be allocated by the end of this year.
Other projects, including distributed systems up to and including 50kW in size and projects determined by competitive bidding tendered by 2019 will have subsidy allocated proportionally.
Additional reporting from pv-tech.cn.