CHINA GRANTS SPECIAL PROTECTION TO RENEWABLE ENERGY FIRMS

Aug 6, 2007 - Asia Pulse

China's renewable energy enterprises will be given "special protection" by the government from September 1.

According to the administration, under methods on power grid enterprises to fully purchase renewable energy issued recently by the State Electricity Regulatory Commission, renewable energy enterprises don't need to compete on the market to enter the grid.

Instead, official prices and government's guided prices will be given to help the renewable energy enter the grid at a preferential price. T

hey will also be granted preferential treatment on dispatching and purchases.

The methods emphasise the responsibilities of the nation's grid enterprises and electricity dispatching departments.

They must give priority to renewable energy dispatching.

Renewable energy generation should not be limited unless it threats the safety of the power grid and all the power should be purchased by electricity grid enterprises and electricity dispatching institutions.

Before the methods were issued, because of the limitations of supply conditions, most of the renewable energy was unstable in supply, which brought difficulties to the operation of the power grid.

The installed capacity of China's renewable energy power took a low percentage in the nation's total installed capacity.

According to statistics issued in 2006, the nation's installed capacity totalled 622 million kw, ranking second in the world.

Included were 20.67 per cent from hydropower stations, 77.82 per cent from thermal power plants, and 1.51 per cent from other clean and renewable energy power.

China hopes to promote and regulate renewable energy power generation.

Renewable energy mainly covers solar energy, wind power, biological energy, geothermy, ocean energy and waterpower.