2019 wind and solar PV tendering mechanism finalised

Dec 30, 2019

On May 28th, the National Energy Agency published the official tendering policy for wind and solar PV. Tendering to determine subsidy amounts serves to ensure that subsidies are only as high as necessary to enable a specific project, thus increasing overall efficiency of the subsidy system and incentivizing technology cost decreases. Lower costs support the energy transition and thus climate change mitigation. The new solar PV tendering mechanism consists of three parts:

• The government will determine the amount of subsidized PV projects based on electricity renewable surcharge revenue instead of planned installations. Authorities will set a subsidy cap based on the estimated amount of surcharge revenue, which reduces the risk of insufficient funding to cover feed-in tariff subsidy payments.

• Tendering applies to most utility-scale PV projects, prioritizing regions that will achieve subsidy-free projects. This increases the efficiency of remaining subsidies and accelerates the phase-out of subsidies.

• The policy will provide stronger support for household PV. A total of RMB 0.75 billion in subsidies, roughly sufficient to subsidize hundreds-mega-watt above 3.5 GW of installed capacity, is open for both new and existing household PV that has not been involved in bidding.

The China National Renewable Energy Center expects a PV capacity of about 40 GW to be installed in 2019. Read more in EN

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Sino-German Climate Partnership III

Project country
Political Partners
German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU); Ministry of Ecology and Environment of the People's Republic of China (MEE); National Energy Administration of the People's Republic of China (NEA)
Implementation Partners
Energy Research Institute of the National Development and Reform Commission of the People's Republic of China
09/2017 – 09/2020

Germany and China signed the Memorandum of Understanding on Cooperation in Combatting Climate Change and initiated this bilateral dialogue as "Sino-German Climate Partnership". The project has been established to support the cooperation between the German Ministry of Environment, Nature Conservation and Nuclear Safety (BMU) and the Chinese Ministry of Ecology and Environment (MEE). The new phase of the project starts in 2018 with close alignment to the restructuring at the Chinese government. In this phase, the project aims to advance the policy dialogue and cooperation with the Chinese partners domestically as well as within the international context of climate change. Part of the work will be supporting the development and implementation of China's medium- and long-term low-carbon development strategies, hence by supporting the Chinese government in strengthening the climate governance system. Domestically the SGCP project supports the policy dialogue on climate change (Sino-German Working Group on Climate Change) and enhances the exchange of German experiences and best practices, this includes strengthening capacities for the development of integrated climate and energy action plans as well as adaptation concepts for cities. On international level the SGCP project enhances the knowledge of both patterns about best practices in regard of climate policies and their implementation. For new cooperation topics identified by the Working Group on Climate Change, the project acts as an incubator for IKI development. As interface for information management, it serves a as a hub for exchange between partners of the IKI within and outside China, especially within the UNFCCC process.