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National Energy Administration: Defining Proportion of Renewable Energy Based on Electric Power Consumption

Author:  Source: The Beijing News  Published time: April 16, 2012


During the 12th Five-Year Plan period, China will establish and implement a renewable energy quota system, that is, a system where the proportion of renewable energy is determined by the aggregate electric power consumption of a local area.


This information was revealed by Liang Zhipeng, deputy chief of the Division of New Energy and Renewable Energy under the National Energy Administration at China New Energy Summit Forum last Friday, indicating that government may adjust its renewable energy policy when faced with such problems as difficulty of wind power connection to the grid and serious waste.


The excessive part of electricity tariff to be apportioned across the country


As explained by Liang, the quota system is to define the proportion of renewable energy according to the total power consumption in a local area, which will serve as a basis for review. According to our source, in its move the National Development and Reform Commission will, according to the specific economic situations in various provinces, assign a quota to each of them. The Methods for Renewable Energy Power Quota Management is likely to be issued in the first half of this year.


Meng Xiangan, vice chairman of China Renewable Energy Society, told our reporter that the quota system will force the power enterprises to generate power with renewable energy while grid enterprises must purchase all such power. A province is assigned a proportion (quota) according to its economic level and power consumption.


Meng cited Shanghai as an example. As the city consumes massive amounts of electric power, it is assigned a higher quota, requiring it to use more renewable power.


As to the question about the electricity tariff, Meng answered that the part of the renewable energy power price in excess of the conventional energy power price will be apportioned across the country according to the renewable power tariff surcharge policy.


Serious waste of wind power may lead to policy adjustment


Of all the renewable energy in China, wind power is developing the fastest. Though the newly added installed capacity from 2005 to 2009 quadrupled, the installed capacity newly added in 2011 went down 6.85%, mainly because government tightened project approval due to wind power accidents, difficulty in grid connection, and other problems.


“The quota system further indicates that government may adjust the existing renewable energy policy in order to strike a balance for regional development, avoid waste, and improve energy efficiency,” said Meng. Last year, 1 million kWh of wind power was wasted as wind power could not connect to the grid.