China eyes wind and solar projects with no subsidies

It wants to raise industry competitiveness and rein in subsidy bills.

Bloomberg reports that China will build wind and solar power projects that will not receive national government payments as part of the country’s push towards competitiveness.

According to the National Development & Reform Commission, the power prices from these pilot projects will be the same or lower than from coal-fired power plants. These plants may also be exempt from participating in some power market transactions and will sign long-term power purchase agreements with grids at fixed tariffs.

China seeks to curb its surplus renewables capacity and its subsidy bill, which followed the investment boom in green energy. It cut financial aid for solar developers, slowing down growth rates and allowing existing capacity to integrate into the grid.

The reports add that the subsidy-free policy will remain valid for the entire life of the projects if they are approved and construction commences before end-2020. Projects that were proposed but not built within a certain time period will be scrapped to make room for non-subsidized plants, without providing further details.

GCL-Poly Energy Holdings Ltd. gained 4.2%% in Hong Kong and Xinyi Solar Holdings Ltd. jumped 9%. Manufacturers also gained in New York, with ReneSola Ltd. up 8.2%, JinkoSolar Holding Co. climbing 5% and Canadian Solar Inc. 2.5%.

Read the full report here.