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China's budget for renewable subsidies rises by 7.5% in 2020 to US$13bn

The Chinese government has increased its budget for renewable power subsidies by 7.5% from CNY85.2bn (US$12bn) in 2019 to CNY92.4bn (US$13bn) in 2020. Solar projects will collect CNY42.8bn (US$6bn, +14%), while wind will receive CNY35.7bn (US$5bn, -3.2%). The remaining CNY13.8bn (US$1.95bn) will fund biomass power and local grid companies. So far in 2020, solar power projects accounting for 33.5 GW of new capacity have applied for subsidies (+36% on 2019). In 2019, the Chinese authorities subsidised 22.8 GW of the 24.8 GW that applied for the scheme.

China plans to increase the share of renewables (including hydro) in the power mix to 28.2% in 2020 and the share of renewables (excluding hydro) is expected to reach 10.8%. Ten provinces and regions must produce at least 30% of power from renewable sources, while 9 provinces and regions target more than 15% of power generation from non-hydro sources. Regional power grid operators have been requested to allocate power capacity according to the targets.

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