China’s National Energy Administration has launched consultation over a quota assessment system for the use of power generated from renewable sources, the Hong Kong Economic Journal reported Thursday.
Under the plan, all provinces are classed into four levels, with a preliminary quota allocated accordingly for the three years starting 2015, the report said. The quota sets out a minimum requirement of renewable energy usage in each province.
Some listed companies that invest in and operate photovoltaic power plants were quoted as saying that the measure can help resolve the difficulties the firms face in supplying renewable energy.
However, most analysts say the actual impact of the policy is uncertain as details of the measure are yet to be unveiled.
The consultation paper gained in-principle approval from the National Development and Reform Commission in August.
However, details on the workflow on such quotas is pending advice from other government agencies, including the ministries of finance and environment, as well as the State-owned Assets Supervision and Administration Commission.
The proposed quota system can solve the problem of sending green electricity on grid at its root, said Yao Jie, a spokesman for United Photovoltaics Group (00686.HK)
Renewable energy projects are expected to be rolled out at a faster pace after the adoption of the new policy, Yao added.
China has been researching such a quota system since 2007 but hasn’t made progress due to unstable supply of such energy and as a lot of wind and solar power was getting wasted without being put on grid.
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