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China Can’t Afford Renewable Subsidies Either!

September 17, 2016

By Paul Homewood  

 

h/t Joe Public

 

image

http://uk.reuters.com/article/china-solar-idUKL3N1BQ2CF

 

 

From Reuters: 

 

China is struggling to pay billions of yuan in subsidies to renewable power generators following a rapid expansion of capacity, a planning agency official said this week.

Wind and solar power capacity has grown faster than expected in the last five years because of preferential policies that include higher tariffs paid for cleaner electricity, as the world’s biggest coal consumer tries to encourage alternative forms of energy.

But Zhi Yuqiang, deputy director responsible for price regulation at the National Development and Reform Commission (NDRC), said developers face a possible shortfall of 60 billion yuan ($9 billion) in subsidy payments this year owed to them by the government.

The subsidy gap had already reached around 55 billion yuan by mid-year, he told an industrial conference in Beijing on Tuesday, according to a transcript of his remarks obtained by Reuters.

"As the scale of new capacity continues to expand, it is very possible that it will exceed 60 billion yuan by the end of the year."

China’s renewable power suppliers enjoy benchmark prices ranging from 0.8-0.98 yuan per kilowatt-hour (kWh) for solar and 0.47-0.6 yuan for wind. Thermal power producers are paid significantly less at 0.3-0.5 yuan per kWh.

The additional outlay for the higher tariffs has been financed in part from surcharges paid by thermal power generators, but Zhi said the amount collected has fallen below expectations.

Besides the higher tariffs, a fall in the price of solar photovoltaic modules to 3 yuan per watt compared to 5 yuan a year ago has driven solar expansion, Zhi said, expanding the subsidies owed.

But after rapid first-half growth, solar firms are bracing for a slowdown in the third quarter, citing a June 30 cut in tariffs for new projects, the subsidy delays, as well as a shortage of grid capacity that kept 21 percent of wind power and 12 percent of solar power offline from January to June.

"Construction costs have definitely fallen because of the fall in module prices, but who can afford to build if you never get the subsidy payments?" said Maggie Ma, chief financial officer of Renesola, a solar manufacturer and project developer.

http://uk.reuters.com/article/china-solar-idUKL3N1BQ2CF

 

 “ but who can afford to build if you never get the subsidy payments?”

 

Rather says it all!

14 Comments leave one →
  1. Joe Public permalink
    September 17, 2016 10:17 pm

    Have you stolen a march on Aunty & The Grauniad reporting this story, Paul?

  2. markl permalink
    September 17, 2016 10:29 pm

    On a large scale Sun and Wind renewable energy are a going out of business sale. Unfortunately they will stay in business as long as the people pay for it…..and they are, and will for time to come but that time is on a diminishing returns plan. People are realizing the cure for using fossil fuels is worse than the non existent problem.

  3. September 17, 2016 10:51 pm

    Reblogged this on WeatherAction News and commented:
    Reality bites

  4. September 17, 2016 11:33 pm

    Reblogged this on Climatism and commented:
    If china can’t afford renewable energy subsidies, how can cash-strapped, debt-riddled, corporate and social welfare burdened Western nations ever afford it?!

    Answer, they can’t. And their eco-brainwashed Government’s simply rack up more debt, whilst electricity prices skyrocket, leading to deadly ‘fuel poverty’ – a worsening epidemic affecting the lower socioeconomic classes in society.

  5. September 18, 2016 5:49 am

    It reminds me of Professor Sir David MacKay’s last interview “Wind and solar a waste of money for UK”. For UK substitute any other country.

  6. TinyCO2 permalink
    September 18, 2016 9:08 am

    Those who do not learn from the past are condemned to repeat it. Those who do not learn from the present should just be condemned full stop.

  7. AndyG55 permalink
    September 18, 2016 10:10 am

    One really good thing for China..

    They can just say.. oops. sorry, “Subsidies are now NON-PAYABLE !!!”

    That would probably be the very best thing that could happen, because feed-through to the scammers sucking on the subsidy teet would put many of them into bankrupcy.

  8. September 18, 2016 10:12 am

    Remember, Tiny, “He who controls the past controls the future. He who controls the present controls the past.” (Orwell — as if I needed to remind you)

    So if you can control past temperatures you can determine what future temperatures will be and if you have control of the current data … well, I mean …… you’re home and dry, aren’t you?

    Waddya mean, “learning from the past”? I created the past, boy!

  9. TinyCO2 permalink
    September 18, 2016 11:39 am

    The modern version would be ‘who controls the internet…’ and so far that’s nobody. Everytime I get worried that the internet will be controlled, somebody influential gets caught doing something naughty. Too many influential people have too much to hide to ever want the internet fully regulated. I have no view whether that’s a good or a bad thing. The internet is the wild west and it undoubtably harbours great evil but it also harbours freedom of speech. Sods law says that they’ll get rid of the latter but keep the former.

  10. September 18, 2016 1:32 pm

    Reblogged this on Patti Kellar.

  11. shivering permalink
    September 18, 2016 3:26 pm

    Shannon Phillips (environment minister in Alberta) ” What we know about renewables is they lower the price for consumers.”

Trackbacks

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