China to lift subsidies for new photovoltaic, onshore wind power projects

BEIJING -- China will end the subsidies for new centralized photovoltaic stations, distributed photovoltaic projects and onshore wind power projects from the central government budget in 2021 and achieve grid parity, according to the country's top economic planner on Friday.

Effective from Aug. 1, the policies aim to promote the efficient use of resources and the high-quality development of new energy industries, such as photovoltaics and wind power, the National Development and Reform Commission said in an online circular.

Electricity generated from new renewable energy projects should match local coal-fired power generators on price, or set its grid price through market trading in 2021, according to the circular.

Starting in 2021, electricity prices for the newly approved offshore wind and solar power projects will be decided by the pricing authorities of provincial-level regions where they are located.

The circular also encourages local governments to roll out policies to support the sustainable and healthy development of renewable energy industries.