The Chinese government will halve the 2020 subsidies budget for new solar capacity and to end state funding to new offshore wind parks. China’s National Energy Administration (NEA) plans to set aside CNY1.5bn (US$213m) to support new solar projects in 2020, of which CNY1bn will be awarded to large-scale power plants through auctions. Subsidies for new onshore wind parks are expected to end in 2021.
New installed solar capacities in China in 2019 are estimated to range between 20-24 GW, which is a significant slowdown compared to previous years. This was mainly due to delays in support policy releases, land availability, lack of financing and grid connection issues. Despite the budget reduction, however, solar additions are expected to slightly increase to 23-31 GW in 2020.
In November 2019, the government decided to reduce renewable power subsidies by 30%, from CNY8.1bn (US$1.15bn) in 2019 to CNY5.7bn (US$807m) in 2020. In 2020, around 52% of the subsidy will go to wind projects (CNY2.97bn or US$422m), 47% to solar parks (CNY2.63bn or US$374m) and 1% to biomass plants (CNY73m or US$10m).
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