Thursday, February 16, 2012

Renewable Energy Electricity Quota System To Be Implemented in China

Renewable energy electricity quota system design ideas have been formed. National energy sector is studying the development of "Renewable energy electricity quota management measures" to resolve the three major issues facing the renewable energy - electricity generation, Internet and market consumption.

It is learned from the NDRC's energy experts that the basic idea of renewable energy quota system is: the government propose the renewable energy electricity quota requirements to the three major parts - power generation companies, grid companies, local governments, that is, the power generation companies are committed to renewable energy generation obligations, grid companies committed to bear the power purchase obligations, electricity consumers to use renewable energy generation obligations. Regarding the system design, the quota system transaction for income is permitted.

It is proposed in the national "12th Five-Year Plan that in year 2015 renewable energy will account for 11.4% of the primary energy consumption. To achieve this binding target, the government will make a series of institutional innovations to renewable energy development. Renewable energy quota system is one of them. According to Liang Zhi-peng, deputy director of National Energy Bureau, New Energy and Renewable Energy Division, the Framework of renewable energy quota system has been basically determined and it may be implemented at the beginning of this year.

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