Here is what’s included in the package of enticements for developers willing to bet on subsidy-free solar and wind projects over the next two years: 1) Long-term contracts Any developer offering to sell energy at grid parity or less from projects approved in the current regulatory period can get a 20-year government offtake agreement. 2) Full acquisition of renewable generation Curtailment is a major issue for Chinese renewable energy developers. For wind farm developers, curtailment amounted to a loss of 16 percent of all generation between 2010 and 2016. To avoid this, zero-subsidy wind and solar farms will be able to convert curtailment losses into a “prioritized generation right” that can be traded on the open market. 3) Lower nontechnical costs The new package will prevent local governments from charging unfair prices for the land used for zero-subsidy renewable energy projects. Regional administrations are also being asked to waive any local content requirements for renewable energy procurement on zero-subsidy projects. 4) Guaranteed grid connections A big problem for subsidy-based projects in northern China is that they sometimes get built faster than the grid connections they need. With zero-subsidy plants, the local transmission system operator will be obliged to put a grid link in place by the time the project is commissioned. 5) Lower transmission fees Currently, renewable energy projects have to pay tier-based fees for transmission capacity, meaning those at the bottom of each tier pay over the odds. The new package reduces transmission fees for projects selling energy directly to end users nearby. Distributed renewable project demos, meanwhile, will only have to pay for the transmission capacity they use in practice. 6) Financial support China’s four state-owned commercial banks and Chinese development banks will be required to arrange loans and develop financial products to support zero-subsidy plants. #ChinaEnergy #Wind #SolarProjects #Renewables https://www.greentechmedia.com/articles/read/china-zero-subsidy-renewables https://www.instagram.com/p/BswuSbjBJMI/?utm_source=ig_tumblr_share&igshid=1kirdt6l4hmsa
