Renewable energy and carbon capture in China

Renewable energy and carbon capture

Give details of the production and consumption of renewable energy in your country. What is the policy on renewable energy? Describe any obligations on the state and private parties for renewable energy production or use. Describe the main provisions of any scheme for registration of renewable energy production and use and for trade of related accounting units or credits.

The state has set national long- and medium-term total targets for the development and utilisation of renewable energy, subsidising the on-grid electricity of electricity generation by using renewable energy. A voluntary subscription system for renewable energy green power certificates has been established. According to the market subscription situation, renewable energy quota assessment and green power certificate mandatory restraint transactions will be launched in 2018. Green power certificates can be formally listed on the national green power certificate subscription platform for sale. Power generation enterprises that have obtained green power certificates can formally sell green power certificates on the national green power certificate subscription platform. The subscription price will be determined by the buyers and sellers themselves through consultation or through competitive bidding according to the amount of additional capital subsidy for renewable energy pricing that is no higher than the corresponding level of the certificate.

Describe, in general terms, any regulation of wind energy.

China supports the industrialisation of wind power generation equipment. It has implemented a price sharing and compensation mechanism for wind power projects and supports building the capacity for wind power technology development, establishing a National Centre for research and development of wind turbines and their components, with an emphasis on supporting the technical research and development of wind turbines and main components and the construction of test facilities. It has also implemented a value-added tax and income tax reduction and exemption system for renewable energy power technology.

Describe, in general terms, any regulation of solar energy.

In drawing up the annual generation plan, the government gives priority to reserving generating space for clean energy units such as hydro, wind power and photovoltaic power. It encourages the participation of clean energy generation the market, and the amount of electricity that has been determined through marketisation of direct transactions can be deducted from the power generation plan. Enterprises, specialised energy service companies and various types of power users, including individuals, are encouraged to invest in the construction and operation of distributed generation projects. Construction fund subsidies or generating capacity subsidies shall be granted to eligible distributed power generation entities. Subsidies for distributed photovoltaic power stations will be provided and financial services will be provided for the development of distributed photovoltaic power.

Describe, in general terms, any regulation of hydropower, geothermal, wave or tidal energy.

China has adopted preferential value-added tax policies for large hydropower enterprises, supports and subsidises rural hydropower expansion and transformation and continues to implement low-interest loans for small hydropower.

There is a focus on supporting geothermal resource exploration and assessment, geothermal heating and refrigeration projects, and power generation and comprehensive utilisation demonstration projects. The price of electricity for geothermal power generation by commercial operation projects is subsidised. Geothermal energy utilisation projects implemented through energy performance contracting can enjoy preferential tax policies, the market guarantee mechanism for geothermal energy utilisation system has been improved and there is vigorous promotion of the development and utilisation of shallow geothermal energy.

Describe, in general terms, any regulation of production of energy based on waste.

The state encourages agricultural producers and the relevant enterprises to take advantage of advanced or applicable technologies to make comprehensive utilisation of crop straws, livestock and poultry excrements, byproducts of the agro-product processing industry and waste agricultural films, and to develop and use biogas and other biomass energies. It promotes harmless disposal of industrial waste, construction waste, sewage treatment plant sludge and other wastes, and recovery of resources from these, and encourages the development of waste incineration and power generation in areas where conditions permit.

Describe, in general terms, any regulation of biofuel for transport uses and any regulation of biomass for generation of heat and power.

China has formulated a preferential taxation policy on biomass energy in the Catalogue of Value-Added Tax Preferences for Products and Labour Services Involving the Comprehensive Utilisation of Resources.

Describe, in general terms, any policy on and regulation of carbon capture and storage.

China’s carbon capture and storage policy is in development. In 2011, China set up an oxygen-enriched combustion carbon capture test base in Wuhan and officially put it into operation.