China Encourages Regions to Maximize Renewable Energy Usage

The teams will cross the country to make sure local governments are implementing renewable energy laws that force all local grid firms to prioritize clean sources of energy and maximize purchases from local renewable power providers

August 31, 2019. By News Bureau

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China has announced that it will send review teams throughout the country to warrant regions are prioritizing renewable energy resources in a bid to cut waste and boost the sector's profitability.

But regulators want plants to operate without state subsidies, partly in order to ease a payment backlog of more than 100 billion yuan ($14 billion).

The teams will cross the country to make sure local governments are implementing renewable energy laws that force all local grid firms to prioritize clean sources of energy and maximize purchases from local renewable power providers.

Regulators have already promised to enforce the law more effectively to help renewable power providers boost profits so they can survive without subsidies.

Some regions have been criticized for wasting large amounts of potential renewable energy, either by failing to build enough grid capacity to carry the power or by giving priority to more conventional sources of power like coal or natural gas.

The Beijing-based non-government organisations Friends of Nature even took regional transmission firms in the northwestern regions of Gansu and Ningxia to court last year for failing to abide by the rules.

China operates a so-called traffic light system to improve what it calls the rhythm of renewable infrastructure construction, giving regions the green light to approve new projects only if they have sufficient transmission capacity to take them on.

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