![]() ![]() Industry insiders have long called for a premium rate for wind power that would be set around RMB 0.25 ($0.03) per kWh higher than power from coal-fired plants in order to create further incentives to attract investors. Such important issues can sometimes make or break a deal, Alberto Mendez, the China general manager of Spain's Gamesa, one of the world's largest wind turbine makers and wind farm developers, said at an industry forum held in May.Īt present, wind farm projects planned or awarded via tenders by the central government have a combined power generation capacity of 2,000 MW, while those handled by local governments have a combined capacity of almost 8,000 MW. Such companies tend to submit uneconomic bids in order to win the project, and then leave the wind farm either undeveloped or equipped with low-quality equipment in order to cut costs.īy going through local governments though, foreign companies can secure better power on-grid tariff rates as well as more control over key aspects of their projects, such as the location of the wind farm. However, such an approach has benefited deep-pocketed state-owned power companies that have emission-reduction targets to fulfill. Tariffs for projects awarded by local governments tend to be RMB 0.1 ($0.013) per kilowatt hour higher than those awarded through the central government's bidding system.īeijing aims to drive down the price of wind generated power in order to encourage its use, which it believes can be achieved through such a competition bidding system as well as the localization of wind power equipment production. Wind generators projects with over 50 megawatts of capacity need to go through a public bidding process, organized by the NDRC, in which low power tariffs are the primary criterion for winning. While the report did not propose any specific price caps, the adoption of such a system would serve as a blow to foreign developers in China's wind energy market who have relied on favorable local on-grid tariffs for small-scale wind power projects in order to generate acceptable profits China should cap wind power on-grid tariffs in order to bring tariffs set by local governments into line with those set through the national public bidding system, according to a report recently released that was compiled by the National Development and Reform Commission's Energy Bureau. ![]()
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