According to Reuters, China will launch trading of certificates for solar and wind power from July 1st 2017, in a bid to reduce government subsidies going to the renewables sector. The National Development and Reform Commission (NDRC) announced the trading program on Friday.
NDRC say that under the program, energy producers will be issued with tradeable certificates guaranteeing that electricity has been generated from a renewable source. Each certificate will represent one megawatt hour of electricity procured from solar or wind.
Reuters go on to say that energy users, such as private and state owned businesses, will then be encouraged to buy the certificates proving that they have have made use of renewable energy.
NDRC gave little detail on the financial side, saying that certificate holders will be entitled to an unspecified payment, whilst power producers that successfully sell their certificates will no longer receive direct subsidies from the state.
The program beginning in July is a pilot. NDRC say it will monitor closely, and may launch a mandatory green certificate scheme at a later date.
China, by far the world’s largest market for renewables, recently announced a 19% cut to its tariff for large-scale solar, as prices for modules fell by around 30% in 2016.
Source: PV Magazine. Reproduced with permission.
