Analysis of Global Power Market
Analysis of China's Power Operation Market
On-grid Tariff Analysis of Wind Power in China
Wind Power Tariffs, China, 2014-2019
consist of
On-grid Tariff for Wind
National Subsidy for
Wind Power Generation
Power Generation
Local On-grid Tariff for Coal-fired
Power Generation
0.8
Class I Region
0.6
0.51 0.49 0.47
1.00
Class II Region
0.40
0.4
0.34
0.75
0.54 0.52 0.50
0.2
0.45
0.50
0.39
0.0
0.25
2014 2015 2016 2018 2019
0.00
2014 2015 2016 2018 2019
1.0
Class III Region
0.8
0.58
0.6
0.56 0.54
0.49
0.43
1.00
Class IV Region
0.4
0.75
0.61
0.61 0.60 0.57
0.52
0.2
0.50
0.0
0.25
2014 2015 2016 2018 2019
0.00
2014 2015 2016 2018 2019
On-grid Tariff
➤
In China, wind power on-grid tariff is subsidised by the Renewable
Energy Development Fund since 2009. Based on different levels of
wind resources, China is divided into four regions with differential on-
grid tariffs. As the costs of wind power generation have been
decreasing in recent years, the on-grid tariff for wind power have also
been reduced by the NDRC.
➤ According to the notice published by NDRC in May 2019, the original
benchmark on-grid tariff for wind power has been changed to the
guidance price. All newly approved on-grid tariff for centralised
onshore wind power projects shall be determined through competition
and shall not be higher than the guidance price in the resource area
where the project is located
Green Certificate
In Jan 2017, NDRC, Ministry of Finance and NEA issued Notice on
Trial Implementation of Issuance and Voluntary Subscription of
Green Certificate for Renewable Energy(关于试行可再生能源绿色
电力证书核发及资源认购交易制度的通知).
➤ The government plans to start a subscription of Green Certificate
from 1st July 2017 and quota examination of renewable energy
and transaction of Green Certificate in 2018.
Wind power generation companies will not be entitled to receive
national subsidies after sales of Green Certificates.
FROST & SULLIVAN
Source: Frost & Sullivan
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