Additional electricity subsidies will be in place

Development and Reform Commission, Electric Power Supervision Committee recently published "on the 2006 annual renewable energy subsidies and tariff quota trading notification program" (hereinafter referred to as the "Circular"), China Wind Energy Association stakeholders believe that this signifies that China’s renewable energy power generation implementation of the cost-sharing system.

From the introduction of "full acquisition of enterprise grid renewable energy electricity regulatory approach" and the release of "renewable energy and long-term development planning", recently introduced for the promotion of renewable energy development in the major policies of this, the Chinese Wind Energy Association on condition of anonymity said that global warming as the largest share of thermal power, China wants to show the world: Promoting the development of renewable energy.

Wind power may exceed target

Early in 2006, according to "renewable energy law" requirements, the SDRC has promulgated the "renewable energy prices and the cost-sharing pilot scheme" and "renewable energy tariff surcharge revenue allocation Interim Measures," and in June 2006, in addition to agricultural production, sales of electricity levy 1% per kilowatt-hour of renewable energy money tariff surcharge. In 2006, China has received in accordance with the regulations of renewable energy tariff surcharge. A wind power plant as an example, the high cost of power generation, wind power, as the price is generally higher than the audited thermal power tariff. By generating cost sharing, higher prices of thermal power to the electricity needs of some families to collect on the money again, according to the generating capacity of wind power-sharing number. But in the absence of implementation details, collect the surcharge has not been issued to the relevant enterprises

According to the release that "notification", the 2006 renewable energy price subsidies additional 260 million yuan total amount of money, including 38 power generation projects and subsidies for electricity subsidies amount of installed capacity of 141.4 million kilowatts. Of these, subsidized wind power project of 133 million kilowatts, rose nearly 95%, 227 million yuan of subsidies, accounting for 87%. "Notification" has requested SPECIAL settlement enterprise grid renewable energy electricity generating projects (including the cost of network access subsidies).

China Wind Energy Association concerned that subsidies in place, enterprises will promote the construction of wind power projects enthusiasm. Relevant persons, in accordance with China’s medium and long-term renewable energy plan, in 2010 and 2020, the National Wind Power, the total installed capacity of wind reached 500 million kilowatts and 3,000 kilowatts. Wind power from the current construction speed, is likely to break that goal.

Beware of high electricity prices for the provinces

"Notice" to additional tariff quota transactions. That right can be charged by the amount of renewable energy tariff surcharge to be paid less than the amount of electricity subsidies provinces, the State Council department in charge of prices in accordance with the amount awarded the same amount of the shortage of renewable energy surcharge tariff quota permit to network transactions between enterprises in the form of quotas for additional funds reunification balance.

China Wind Energy Association believe that, from a policy of view, the more windy, construction projects, the country can win more renewable energy surcharge funds, this policy will stimulate the provinces the development of renewable energy projects in the initiative, which further accelerated the development of renewable energy.

Concerned that this might give rise to another question. For provinces that fought for more funding for renewable energy projects for a higher price.

The wind power project as an example, more than five million kilowatts of wind power projects under national pricing, 5 million kilowatts following the implementation of the provincial pricing. As part of the thermal power over prices that the cost sharing in the provinces set the price of wind power, will tend to be a high-priced, so that enterprises will be conducive to the development of the province, while the province without paying users.

China Wind Energy Association said that the situation in practice appeared. The national authorities have noted this problem, although there is no mandatory system, but in the provinces was reviewed by the actual wind power project price, a practice generally not high prices, or a national assessment will determine the maximum