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BEIJING, Dec 24 (CEIS): China's supporting policies concerning the Renewable Energy Law are in the process of formulating and they are expected to be issued very soon, said an official with the National Development and Reform Commission (NDRC) recently.
Related measures of electricity price have basically drawn up and are predicted to be published at the end of this year as schedule, according to the official.
The official noted that the state will grant a certain preferential price treatments to electricity generated by renewable energy.
It is learned that the network access price of electricity generated by wind power station will have an increase of 0.23 yuan over the basis of fixed price of coal-based electricity in 2005, and that of electricity generated by biological energy have an increase of 0.25 yuan. The electricity generated by other renewable energy will enjoy preferential price treatments to different extents.
Besides preferential price treatment, the state will support the development of renewable energy through sales network, quota system, taxation and special funds, said the official.
For instance, large energy and power enterprises are required to buy renewable energy products, and power generators to have a certain proportion of electricity generated by renewable energy.
Different tax rates will be given to different sectors of renewable energy-based power generating, and the specific tax rate is still in the process of formulating.
Details of the special renewable energy fund, to be jointly administered by the Ministry of Finance and NDRC, are still in the process of study, and are expected to have a result at the end of this year, according to the official.
As compared with conventional energy, renewable energy hasn't been of economic competitiveness yet. Considering the optimisation of future energy structure and future demand for energy, China must provide policy support to the renewable energy technologies of great development potentials, said Zhou Dadi, director of NDRCs Energy Institute.
China's Renewable Energy Law, issued on February 28, 2005, will take effect officially as of January 1, 2006.
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