- China will end payment subsidies for new clean energy installations in2021.
- The new policy takes effect on August 1.
- Prices for new capacity will be benchmarked with coal prices or market prices.
China central government plans to end subsidies for new solar power stations, distributed solar projects, or onshore wind projects. The new rule, which will take effect from the 1st of August, follows the drastic fall in the cost of solar and wind components and the increased clean energy capacity in China. The move is expected to ease a backlog of subsidy payments of over 400 billion yuan ($62.64 billion).
According to the National Development and Reform Commission (NDRC), electricity generated from new projects will be sold at local benchmark coal-fired power prices or market prices. In addition, electricity prices for approved offshore wind and concentrated solar power projects will now be set by the provincial governments where they are situated. The NDRC also encouraged local governments to implement policies to support clean energy industries including solar and wind.