China’s National Development and Reform Commission (NDRC) has announced its plan to pay CNY 0.75-0.85 ($0.12-0.14) per kWh for electricity produced by offshore wind turbines, aimed to encourage more investment in the sector.
According to the notice issued by NDRC, the on-grid tariff will be paid to wind farms which will enter service before 2017, Reuters reported.
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For projects launched after 2017, prices will be adjusted in accordance with technological improvements and changes in costs, the NDRC said.
Variable tariffs have been used by the country to encourage cleaner power generation.
A benchmark tariff of CNY0.43 per kWh for nuclear power was set by China last year as well as raised tariffs for coal-fired power plants that had installed clean technologies.
China’s CI Consulting, an industrial research firm, analysts said that although the new price may not completely cover the current offshore wind installation costs it could ease worries that offshore wind power’s electricity would be refused by the grid.
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By GlobalDataThe new policy is expected to encourage the development of China’s rich offshore wind resources, the NDRC said in the notice.
Currently, offshore capacity stands at just 400MW, which amounts to less than 0.5% of China’s total wind capacity.
By the end of May 2014, the total installed wind capacity in China stood at 82.27GW, which marks 23.1% increase on the year and amounting to 6.6% of the national total.
