China: 11th Five-Year Plan

The programming period is divided into the Eleventh Five Year Plan period running to 2010 and the period from 2010 to 2020. The energy conservation objectives and the focus of development by 2010 are essentially planned, whereas the objectives stated for 2020 are proposed. In its “alternative oil strategy,” which is part of the Five-Year Plan, Beijing has called for a doubling in renewable energy generation to 15% of the country’s needs by 2020, including major increases in wind power and biomass.

China: Medium and Long Term Energy Conservation Plan

China: Electricity price increase

China’s top pricing and tax decision-making group has developed a pricing system for electricity generated by renewable energy.  The plan requires raising the tarrif - the set price at which generators of electricity can sell their power to grid companies.  The rate increase will vary by region depending on the level of economic development.   The customer will be paying the additional cost of producing RE.

Date Implemented: 2006

China: Ride the Wind

Rural electrification through renewables (wind)

Status: Voluntary

Targets: The goal is to reduce production costs and increase the localization percentage of wind turbines from 40% to 70% by the end of the Tenth Five-Year Plan period.

References: http://www.nrel.gov/docs/fy04osti/35787.pdf

China: Brightness Program

Decentralized electrification of rural areas through renewables

Date Implemented: 1996-1999

Targets: Wind and solar equipment is to be installed to provide 100W of electricity per capita to eight million people, as part of the Central Government Poverty Alleviation Meeting.

References: http://www.nrel.gov/docs/fy04osti/35787.pdf

China: Low interest loans

The Chinese government has issued low interest loans and interest subsidies for power plants using renewable technolgies to reduce the cost.

Date Implemented: since 1987

Status: In Force

China: Tax incentives

The Chinese government provides tax incentives to promote the development of renewable energy technologies. The standard VAT is 17%. However, VAT for biogas is only 13%, and VAT for wind is 8.5% and for small hydro-projects is only 6%.

Status: In Force

China: Import Duties

The Chinese government has lowered import duties to directly promote the development of renewable energy technologies.  The average import duty now stands at 23%, but renewable energy technologies enjoy special low rates: 3% for components of wind power plants, 6% for wind turbines, and 12% for photovoltaics (PV) systems.

Status: In Force

China: Parallel Operation Regulations for Wind Power Generation

This legislation requires power grids to allow interconnection and parallel operations of wind farms, and states that power grids must buy all the electricity generated by wind farms at a price that covers production costs.

Date Implemented: 1996

Status: Mandatory

China: Ninth Five-Year Plan

Under the 9th Five-Year Plan, China initiated several national programs including the Brightness Program, Integrated and Comprehensive Rural Electrification, Energy Efficient Lighting, and the Riding Wind Program.

Date Implemented: 1996-2000

Status: Ended; Framework Policy