Abstract
The beginning of 2020 has brought a long-awaited blessing to non-hydro renewable energy sector given by China’s policy makers. New regulatory developments represent a real game changer, carrying potential to propel latent sub-sectors toward becoming powerful engines for China’s sustainable energy future. Implications will be economically and socially significant for grid companies, for businesses, and for end users. This paper analyses the characteristics of newly minted rules by China’s policy makers and top regulator. It further outlines the most important aspects of what grid operators, their customers, and businesses shall anticipate in actual terms. It often has turned out that new regulatory developments end as nothing more than a footnote to the general narrative on China’s energy future, yet this paper demonstrates how consequential current regulatory undertakings are for the non-hydro renewable energy sector and all the stakeholders involved.
Highlights
On February 3, 2020 the Ministry of Finance, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have jointly issued ‘Opinions on promoting the healthy development of non-hydro renewable energy power generation’ (PR China State Council [SC] Decree No 4, 2020)
NEA is carrying mission as coordinator of all energy policies in China, while NDRC is at the helm of largest economic-oriented planning initiatives, which are the building blocks of China’s five-year plans (FYP)
The following analysis is not aimed at frustrating the sceptics, but rather intended to bring more clarity regarding Opinion’s game changing elements for China’s non-hydro renewable energy sector
Summary
On February 3, 2020 the Ministry of Finance, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have jointly issued ‘Opinions on promoting the healthy development of non-hydro renewable energy power generation’ (PR China State Council [SC] Decree No 4, 2020) (hereinafter referred to as the “Opinions”). NEA is carrying mission as coordinator of all energy policies in China, while NDRC is at the helm of largest economic-oriented planning initiatives, which are the building blocks of China’s five-year plans (FYP). This format suggests that preparation for the 14th FYP is underway, and importantly, the 14th FYP for energy is already in the making. The significance of this new regulatory document is yet to be known, as only a month has passed since its issuance. As the new regulations have legal effect on all grid operators, including China State Grid Corporation and China Southern Power Grid (PRC SC Decree No 4, 2020), this paper projects that all the consequences the regulatory document brings would be wider, encompassing, and all-embracing for China’s energy future
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