China is sticking to its timetable for removing renewable energy subsidies.
Faced with delays caused by Covid-19, developers are under pressure to not only restore production and get supply chains up and running again, but to get extra capacity installed and connected to the grid before subsidies end.
Despite the disruption, the government is set on having wind and solar compete with coal power on price and on schedule – ushering in an era of “grid parity”. Renewables have received subsidies since 2011 and their removal is expected to increase competition in the sector.
Grid connection delays
The pandemic has made it harder to get grid connections in place before subsidy windows close. In May 2019, the National Development and Reform Commission (NDRC), the top agency for economic policymaking, said that onshore wind power projects approved in 2019 and 2020 and connected to the grid before the end of 2021 would get a lower subsidy than those approved in 2018 and connected to the grid by the end of 2020. After 2021, there would be no more subsidies for new projects. Some solar farms that are not connected to the grid by 30 June will lose subsidies. link
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