Renewable energy additional tariff may be doubled with 10 billion financial assist per year

If the tariff is increased to 0.8 cent, it means that about 20 billion yuan can be received as subsidies for renewable energy funds, doubling than the current standard.

Tariff surcharge will continue to increase  Renewable energy subsidy funds usher a new growth

Huang Shaozhong said in the Fifth China New Energy International Forum, If additional electricity tariff is charged for 0.4 cent per kWh, 10 billion will be received a year, which can only meet about 70% of 2010 renewable energy subsidies. With the accelerating development of renewable energy,this gap will become larger and larger.

Huang Shaozhong said, the tariff will be increased to 0.6-0.8 cent this year or next year, and this value may be further increased to 1 cent by the end of the "Twelfth Five Plan".

Additional electricity tariff can be traced back to 2006. In accordance with the “Renewable Energy Law "adopted in 2006, power companies buy wind power, photovoltaic etc. in accordance with bid. The part beyond the conventional thermal power benchmark price can be shared in sale price. The additional criterion at that time was 0.002 yuan per kWh.

Although the additional criterion was 0.002 yuan per kWh, it is very important to new energy industry, and 5 billion yuan can be received every year. It is not enough, but the sources are reliable, and thus able to achieve the role of the direct payment of difference costs and supporting industry. In December 2009, the National People's Congress passed the "Renewable Energy Amend Law”, and the additional criteria is 0.004 yuan per kWh.

"Renewable Energy Amend Law" amended the “Grid enterprises purchase all the renewable electricity connecting to the grid under their grid coverage” to “guarantee purchase policy is implemented for renewable energy” at same time. Annual acquisition targets of renewable energy are made by National Electric Monitoring agencies and financial department of the State Council according to the plan, and minimum purchase amount for grid enterprise is announced.

Gap of renewable energy support funding becoming larger

The policy amended for renewable energy makes it usher in the golden age of development.

Ernst & Young has released the latest global survey report of “renewable energy country attractiveness index”, showing that global investment in clean energy has reached unprecedented $ 243 billion in 2010, with increase of 30%, and China occupies an important position in the market of the global renewable energy.

The report points out that wind and solar energy market continues to maintain growth momentum. China's wind power total installed capacity  increases by 64% in 2010, reaching more than 42 million kilowatts. Last year, the U.S. wind power new installed capacity is 5.1 million kilowatts, equivalent to only half the level in 2009, less than 1/3 of 16.5 million kilowatts of China new installed capacity.

The offshore wind power is also developed very well in 2010 with new installed capacity of 51%. However, the global land-based wind power capacity has declined by 7%, of which Europe fell by 14%. The solar power industry developed strongly, and concentrated solar power market continues to develop. Biogas power investment level is the same as in 2009.

According to China's commitments, the proportion of China's non-fossil energy in the energy structure will reach 15% by 2010 which was only 9.6% last year. In 12th Five-Year Plan, the ratio of non-fossil fuels in primary energy should be increased to 11.4% after 5 years.

Shi Pengfei, Vice President of wind energy professional committee of China Renewable Energy Association, said to journalist, eight 10-million kilowatt wind power bases have being built in the seven provinces, such as Jiuquan of Gansu Province, Hami of Xinjiang, Hebei, Jilin, eastern Inner Mongolia, western Inner Mongolia, Jiangsu, Shandong and other wind energy resource-rich regions.

“As is known, phase I of the first 10 million-kilowatt wind power base in Jiuquan of Gansu Province has been fully completed, and the second phase of construction has begun. It currently addresses the issue of transporting electricity to the North China Grid. Other seven 10-million kilowatt wind power bases being built also have a certain scale", said Shi Pengfei.

He also said that the planning and construction of 10 million kilowatt wind power bases will ensure the electrical power output and sale of 100 million kilowatts of wind power base in China by 2020, achieving national renewable energy target in the medium-and long-term development plan

However, with rapid development of renewable energy in China, the support funding gap is also growing. This is also a factor to increase the additional electricity price.

 Increase renewable energy proportion in building energy

 The "Notification on Further Promoting the application of Renewable Energy Buildings”issued by The Ministry of Finance, Housing and Urban Ministry jointly,made clear of renewable energy building promotion goals in 12th Five-year Plan, effectively improved the proportion of solar, shallow geothermal energy, biomass and other renewable energy in the building.

By 2020, the proportion of renewable energy consumption in the construction sector accounted for more than 15% of building energy consumption. The proportion of renewable energy consumption accounting for building energy consumption achieve more than 10% for key areas by the end of 2015. Renewable energy construction area should be increased more than 2.5 billion square meters, forming conventional energy alternative capacity of 30 million tons of standard coal.(Source: www.nddaily.com )