Focus on Arts and Ecology

17-23 May, 2019

China has launched provincial quotas for renewable energy use to tackle chronic wastage. After three rounds of public consultation, the quota mechanism has finally been released by the National Development and Reform Council and the National Energy Administration (NEA). The release details the role of provincial-level energy administrators, grid companies and power trading bodies, who will be responsible for ensuring “market players” consume enough renewable energy to meet the quota.

The policy comes against a backdrop of years of rapid expansion of renewable energy capacity, and serious problems with integrating that energy into the grid, where coal still holds strong. In some provinces, as much as 30% of renewable energy generated never reaches the grid.

Each province’s quota is allocated based on its renewable energy resources and electricity consumption, and other factors including energy sector plans at the national level, reports the energy industry outlet BJX. The mechanism also allows for trading of power between provinces via a “Green Card Trading” platform. An NEA member of staff interviewed by BJX stressed that the new system will not lead to significant price hikes for end users.

For more on this important piece in China’s energy transition, see chinadialogue’s analysis of the draft policy last year.