Price competition for wind and solar PV will include tenders/auctions and spot power markets. In 2019, China will focus on three major renewable policies, implementing nationwide tenders for subsidized projects, scaling up subsidies for wind and solar PV projects, and facilitating renewable energy in various power markets that are currently under development.
Policymakers are now discussing a nationwide solar tendering system. The NEA would select solar PV projects from the lowest price until the number of annual subsidies is used up.
In January 2019, the NEA and NDRC jointly announced a plan to launch subsidy-free wind and solar pilots. The government will provide eight supporting incentives such as exemptions from land transaction fees and a 20-year feed-in tariff power purchase agreement.
In March 2019, the NDRC issued the draft policy, Suggestions for Establishing Spot Power Market Pilots and requested public comments. The policy proposes that clean energy could participate in spot markets by making offers for volume only (that is, without bidding a price). As price takers, renewable projects will have priority for market clearance.
Solar tendering, Subsidy-free pilots, Spot power market pilots