China has issued the first green power trading certificates before launching the green power trading programme, that will reduce the government's subsidies for renewable projects as of 1 July 2017.
China has issued a total of 230,135 certificates representing 1 MWh of renewable power each to 20 renewable power generation projects in six provinces with a combined capacity of 112.5 MW and promoted by China Huaneng, China Huadian and China Energy Conservation Investment Corporation. The certificates will be valued no higher than the cost of the renewable power for wind or solar plus the cost of the subsidy for the province where the project is located, which should reduce the subsidy burden for the government.
The green power trading programme will be launched by the Management Centre on 1 July 2017. It will start on a voluntary basis and will be made mandatory as early as 2018, depending on its success. Under this programme, renewable power producers will have to sell their certificates and will no longer receive direct subsidies for renewable generation.
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