China adopting feed-in tariffs for solar and wind

Beijing, 25 August 2009 – Nationwide feed-in tariff schemes for solar and wind have been announced in China, and are to be launched by the end of the year.

For solar, the scheme is to cover utility scale plants, by offering them a support between US$0.16 and US$0.22 per kilowatt hour of electricity produced. Details of the policy are not yet clear; but the country hopes to boost local manufacturers’ production.

For onshore wind, tariffs are to be US$0.075, US$0.079, US$0.084 and US$0.089 per kilowatt hour of electricity produced; applicable to four different types of categories of projects. Areas with higher wind electricity generation potential are to lower levels of tariffs as opposed to those with lower potential.

For offshore project different a different tariff system will apply, relating to the construction process.

In both cases, for solar and wind, the levels of the tariffs are significantly higher than the average rate of US$0.05 per kilowatt hour paid to coal-fired electricity generators; signaling the country’s interest in supporting the development of REs in its economy.

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