China’s National Energy Administration Puts Forth New Round Changes for Offshore Power Prices

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On May the 8th, China’s National Energy Administration held an impromptu consultative forum in close regard with the construction and management of offshore wind, specifically, the forum aimed to discuss and potentially reconsider the much reported “over-strictness” situation of certain policies and regulations that had been scheduled to be put into place earlier this year.

In part, the impetus of the National Energy Administration for the new-round deliberation over offshore power prices allegedly comes from the industry’s widespread complaints over a previously released document entitled The Notification on the 2019 Construction and Management of Wind Power and Photovoltaic Power (Draft Edition for Public Suggestion). Presumably for fear of dampening offshore wind growth (which has gradually entered a plateau according to 2018 data), the penal at the forum has made two significant adjustments to the Notification.

First, instead of on a national level, now provincial governments are charged with the responsibility of the data compilation of offshore wind and photovoltaic power project to make sure that these projects (mostly those scheduled to reach completion by the end of 2020 and early 2021) abide by their on-grid connection and commission times. Second, the offshore wind projects ratified in 2018 must complete on-grid connection before the end of 2021 to acquire high electric price subsidy at the previously stipulated level of 0.85 RMB/kWh.