The rates are an improvement on those arrived at through competitive tenders for large government sponsored wind farms during 2003-2006, says Shi Pengfei of the China Wind Energy Association. These ranged from CNY 0.42/kWh ($0.06/kWh) to CNY 0.50/kWh ($0.072/kWh). NRDC is in charge of the competitive tendering process for projects of 50 MW and more and the setting of rates for provincial government purchases of power from wind farms of less than 50 MW. Shi says the new rates are reasonable. "They were determined with much consideration of the local wind resources, transport conditions, and cost of equipment procurement. They should allow the developers to make a profit," he says. NDRC's latest round of competitive bidding for concession contracts also resulted in higher contract prices (main story).
Power purchase prices for 72 wind farms spread across eight provinces and all with rated capacities under 50 MW have been set by the National Development & Reform Commission (NDRC), China's government department for economic planning and approval. The prices vary from region to region in a range of CNY 0.51-0.61/kWh ($0.074-$0.088/kWh).