China plans to launch a new renewable power quota system before the end of the year, in an effort aimed at making better use of the nation’s renewable energy resources and reduce waste.
The new quota system will set minimum renewable power consumption targets for each region. Companies covered by the scheme will receive renewable energy certificates when they buy renewable power and will be forced to buy additional certificates if they fail to reach their targets, Reuters reports.
The National Development and Reform Commission (NDRC) was quoted as saying in a new 2018-2020 plan for the clean electricity sector that it will work to cut renewable power wastage rates to 5 percent by 2020 from as high as 12 percent this year, according to the report.
The NDRC promised to create new mechanisms and price-setting policies, and would also implement a system that would force local governments to give renewable electricity sources priority access to the power market.
Industrial power consumers that possess their own “captive” power plants will also be forced to source a greater proportion of their electricity from local renewable sources.
The state planning agency said on Tuesday that it will also encourage local governments to be more flexible when it comes to securing long-term power supplies with local thermal power providers.
To prevent renewable power sources from being squeezed out by cheaper coal-fired power providers, China will study ways for thermal and renewable power providers to cooperate under the direction of a unitary electricity dispatching unit.
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