China

China

Thermal power to receive subsidies for wind power boost

CHINA: The Northeast China Electricity Regulatory Bureau has drafted new measures allowing thermal power to receive subsidies for reducing output at times of peak wind power production.

The administration has released its "Northeast Region Wind and Thermal Power Replacement Transaction Provisional Measures". It aims to resolve impediments to the utilisation of wind power in the provinces of Heilongjiang, Liaoning and Jilin.

The measures state that when power grids would otherwise refrain from usage of wind power due to peak shaving or grid restraints, thermal power companies participating in the replacement transactions will reduce their power generation levels. This will enable wind power companies to pick up the slack.

Thermal power companies will receive economic subsidies for their participation, with the subsidy price to be determined by both wind and thermal players by means of independent negotiation.

Analysts believe that the mechanism is a practical means of reducing coal usage and expanding wind power usage in China’s north-east, yet remain unsure of its applicability in the country’s north-west, where the problem of idle wind capacity is particularly severe.

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