The Chinese National Development & Reform Commission (NDRC) has unveiled the Renewable Portfolio Standard, a new draft legislation expected to be finalised by the end of 2018.
The proposed RPS is aiming for renewable energy sources to stand for at least 35% of the domestic electricity consumption by 2030. Besides, the NDRC also stepped up 2018-2020 non-hydro renewables consumption targets for some provinces such as Inner Mongolia, which would have to increase its use to 18% in 2018 from a previous goal of 13%; regional targets have also been raised in Yunnan and Xinjiang. In the current legislation, the government recalls national targets of 15% of total primary energy consumption by 2020 and 20% by 2030 and also targets non-hydro renewables to produce 9% of the national electricity consumption by 2020, with requirements for each province and region ranging from 5% to 13%.
Under the proposed RPS, renewable power producers will be issued green certificates that can be transferred to grid companies upon power dispatch or to direct power purchasers. Renewable power traded across regions or provinces will be required to include the price of green certificates, with revenues deducted from subsidies paid to operators. The proposed RPS will also apply to power sales companies and local grid companies that are not under the State Grid Corporation of China or China Southern Power Grid. Non-compliant companies to pay compensation fees to grid companies, which will help the government recoup its renewable power subsidies.