China set to axe subsidies for onshore wind

The Chinese government has announced that it is planning to end the handout of subsidies to onshore wind farms in 2021, putting renewables on an equal footing with the coal and gas industries.

China has in recent years offered notably high tariffs to wind and solar projects but falling construction costs have started to put the continuation of the subsidy system under pressure.

Subsidies are set to be phased out gradually in the country, with tariffs being significantly lowered as of next year.

China’s¬†National Development and Reform Commission¬†and the country’s energy regulator have announced that onshore wind tariffs will fall to as little as 0.29 yuan (US$0.0420) per kWh in 2020.

The government has said that it plans to offer technological and policy support to renewables developers in order to smooth the transition beyond subsidies.

There is currently a large subsidy payment backlog in China that the government will have to work through before the subsidy system ends.

The Chinese government launched a string of new subsidy-free wind and solar projects in January [2019] and announced a further 21GW of projects earlier this month.

The government has approved a total of 224 renewables projects this year, together totalling a combined capacity of 19.29GW.

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