China sets renewable power subsidies lower at 5.4 billion yuan in 2024

CHINA has set its 2024 renewable power subsidy at 5.4 billion yuan (S$1 billion) for 2024, the finance ministry said.

The ministry said on Thursday (Jun 20) it was issuing another 220 million yuan in subsidies, on top of 5.18 billion yuan previously announced.

The amount is down from 7.4 billion yuan in 2023 and 6.19 billion yuan in 2022, both issued in two tranches.

Of this year’s subsidies, 1.96 billion yuan will go to solar power, 3.43 billion to wind and 17 million to biofuel.

China has been scaling back support to push renewable power generators to compete on a market basis.

The government from April ended a guarantee that grid operators would buy nearly all renewable power generators’ production at a rate tied to the coal index. That means renewable generators have been increasingly subject to less favourable market pricing, cutting into profit margins. REUTERS