The Chinese government has announced changes in the financing of renewable energy projects, reducing subsidies for new solar and wind power plants. This was reported by the BBC, UNN reports.
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This decision was made amid rapid growth in the industry, which has already exceeded its 2030 goals.
In 2024, China set a record in the introduction of solar energy, increasing capacity by 45% compared to the previous year. The total capacity of solar power plants in the country reached 887 GW, which is significantly higher than in other countries. Thanks to this rapid development, China has fulfilled its commitments to expand clean energy ahead of schedule.
China's National Development and Reform Commission (NDRC), together with the country's energy administration, has announced the transition to "market-based" pricing mechanisms for new projects. From now on, projects completed after June will sell electricity on the basis of market bidding. This change is not expected to affect tariffs for households and the agricultural sector, while prices for industry and business are expected to remain stable.
Despite the success in the development of clean energy, the Chinese authorities have recognized the need to adjust financial support. Reducing subsidies could increase competition in the industry and affect solar panel companies.