China Continues to Implement Programs for Renewable Energy Development

published: 2014-05-06 17:49 | editor: | category: News

China has officially unveiled this year’s energy policies and will continue to develop renewable energy. To drive investment and demand to installations, the Chinese government implemented some feed-in tariff (FiT) programs and investment programs from the East to the West.

Recently, Shanghai City’s National Development and Reform Commission implemented a FiT program for renewable energy projects. According to this program, investors to renewable energy can receive a five-year FiT as long as they invest in solar/wind projects between 2013 and 2015. The FiT scheme is:

Onshore wind power

RMB$0.1/kWh

Offshore wind power

RMB$0.2/kWh

PV power plants

RMB$0.3/kWh

Distributed PV Generation

commercial/industrial use

RMB$0.25/kWh

residential/school use

RMB$0.4/kWh

Each projects can receive at most RMB$50 million every year. PV projects that have already supported by any other national programs are exempted from this new FiT program. Under this scheme, a residential PV installation can create an average ROI of 10% in Shanghai City, explained Ms. Chang, the Vice General Manager at Shanghai Green Building Solar.

Meanwhile, China Power Investment Corporation also signed an accord with the Tibetan Government for developing energy infrastructures. As a part of the China 12-5 plan, China Power Investment Corp. introduced this accord as a solution to help Tibetan population without electricity. It provides a comprehensive program to develop solar, geothermal, hydro and wind power by advanced energy plans, construction, management and human resources. The Corporation will also invest up to RMB$3.2 billion in green generation by 2020, stated a representative. This makes Tibet the third Western region which has started establishing green power plants.

A Chinese report points that these programs will help improve cash flow regarding renewable investments domestically and hence will drive more investors to expand their target into the Chinese green energy market.

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