China prepares plan for gradual cuts to wind, solar tariffs - report

The preferential tariffs for wind and solar power in China may be cut in 2016 by 5.8% and 5.6%, respectively, under a plan by the National Development and Reform Commission (NDRC), seen by Bloomberg.

According to the report, the tariffs will be reduced annually through the end of the decade. By 2020, wind power rates could be cut by 19% from 2016 levels, while for solar the planned reduction is 15%.

Currently surcharges on electricity consumer bills in China do not bring enough to cover payments for green power, so NDRC’s proposal aims to narrow the gap, Bloomberg said. The proposal is now being discussed with the wind and solar industry. The tariff reduction will become effective from the start of next year, once an agreement is reached.

China’s National Energy Administration (NEA) said recently the country’s large-scale wind power capacity has reached 108.9 GW as of the end of September 2015. Its installed solar photovoltaic (PV) capacity amounted to 38 GW.

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