China eyes capping new renewables subsidies at $722m

The quota of the subsidies will be decided based on the scale of their funds.

China is looking to keep the total of the new subsidies for new wind, photovoltaic, and biomass power projects within $722m (RMB5b) in 2020, Xinhua reports, citing official sources.

The quota of new subsidies should be decided based on the scale of subsidy funds, said the guideline issued by the Ministry of Finance (MOF), the National Development and Reform Commission and the National Energy Administration.

New offshore wind power and photothermal projects will no longer receive subsidies from the central government, whilst local governments can subsidise such projects according to local conditions.

The report adds that since 2012, the central government has allocated more than RMB450b yuan of subsidies to support the development of renewable energy.

The MOF called for higher efficiency in the use of subsidies and vowed to crack down on activities by companies that receive subsidies through “improper means.”