China slashes solar, offshore wind subsidies by half


China’s National Energy Administration (NEA) has confirmed the slashing of solar subsidies, halving the total budget allocation for solar power project subsidies to RMB1.5 billion ($214 million) for 2020, as well as the complete scrapping of subsidisation for offshore wind projects.

The move is an even more austere one than expected from Beijing, with a previous announcement by Finance Minister stating an anticipated cut of up to one-third in renewables support via subsidisation.

Related Stories:
China drops electricity subsidy price for offshore wind power
US remains on China’s heels in the race to sustainability
Coronavirus to infect China’s wind market – report

RMB1 billion ($143 million) of the solar budget will be allocated to the construction of large scale projects, including industrial and commercial distributed generation plants. Residential rooftop solar has been allocated a total of RMB500 million ($71.48 million).

Eligible projects must be scheduled to begin construction in 2020, and applications for support need to be submitted by mid-June.

Offshore wind will only become eligible for subsidisation in 2021, as per news site CX Tech.

Due to industry impacts resulting from the coronavirus pandemic, solar and wind facilities have been granted an extension until the end of April for applications to connect to the country’s power grid.

The energy transition is a hot topic disrupting the utility industry in Asia and will be a key focus at Enlit Asia which takes place in Jakarta, Indonesia from 23-25 March. For more details click here.