China Launches Subsidy-Free Solar, Wind Power Policy

[Adam Varga + 123]

China will launch a series of subsidy-free wind and solar projects this year to take advantage of a rapid fall in construction costs since 2012 and tackle a gaping payment backlog, according to the country’s top planning agency.

Last year, the government was forced to suspend all new subsidized solar capacity approvals after a record 53-gigawatt capacity increase in 2017 left it with a backlog of at least $18 billion in subsidy payments.

The new subsidy-free projects will generate renewable power for sale at the same prices as non-subsidised coal-fired power plants, and will not have to comply with capacity quota restrictions.