Up to now, China’s offshore wind power tariff policy has gone through two stages: the first stage is the gradual decline of electricity price, the second stage is the national cancellation of subsidies, and the local relay subsidies.

Before 2015, China’s offshore wind power pricing policy was basically based on concession bidding. On December 22, 2015, the National Development and Reform Commission issued the Notice on Improving the Benchmark Tariff Policy for On-line Wind Photovoltaic Power Generation (hereinafter referred to as the Notice), and China started the fixed tariff cycle for offshore wind power. The Notice specifies for the first time the feed-in tariff of offshore wind power intertidal zone and offshore projects, which are 0.75 yuan/kWh and 0.85 yuan/kWh respectively.

On May 21, 2019, the National Development and Reform Commission issued the Notice on Improving the On-grid Tariff Policy for Wind Power, which adjusted the newly approved offshore wind power guidance price in line with the plan and included in the annual scale management of financial subsidies to 0.8 yuan/kWh in 2019 and 0.75 yuan/kWh in 2020. In addition, the on-grid electricity price of the newly approved offshore wind power project determined through competition shall not be higher than the above guidance price; The on-grid electricity price of the newly approved intertidal wind power project determined through competition shall not be higher than the guidance price of onshore wind power in the resource area where the project is located. The policy also stipulates that for offshore wind power projects approved before the end of 2018, if all units are connected to the grid before the end of 2021, the approved feed-in tariff shall be implemented; If all units complete grid connection in 2022 and later, the guidance price for grid connection year shall be implemented.

On January 20, 2020, the Ministry of Finance, the National Development and Reform Commission and the National Energy Administration issued the Several Opinions on Promoting the Healthy Development of Non-water Renewable Energy Power Generation to further clarify that the new offshore wind power and solar thermal power projects will no longer be included in the scope of the central financial subsidies, and the stock offshore wind power and solar thermal power projects that have been approved (filed) as required and completed the grid connection of all units by December 31, 2021, Included in the scope of central financial subsidies according to the corresponding price policy. This means that since 2022, China’s offshore wind power projects will no longer be included in the scope of central financial subsidies, and offshore wind power development will enter the relay period of local subsidies.

Shanghai

At the time when the state subsidy is about to withdraw, Shanghai has become the region that has announced the local subsidy (reward) policy for offshore wind power earlier. On June 2, 2020, the Shanghai Municipal Development and Reform Commission and the Shanghai Municipal Bureau of Finance issued the “Special Fund Support Measures for the Development of Renewable Energy and New Energy in Shanghai” (2020). For renewable energy projects that were put into operation from 2019 to 2021 in the city, the project investors will be rewarded according to the actual electricity generated. The reward period is five consecutive years, and the annual reward amount of a single project will not exceed 50 million yuan. Among them, the award standard for offshore wind power projects is 0.1 yuan/kWh, and the award standard for offshore wind power projects will be determined through further study.

On November 18, 2022, the Shanghai Municipal Development and Reform Commission and the Shanghai Municipal Bureau of Finance issued the “Special Fund Support Measures for Renewable Energy and New Energy Development in Shanghai” (2022) (hereinafter referred to as the “Measures”), further clarifying the incentive mechanism for far-reaching offshore wind power projects. The Measures propose that for the offshore wind power projects invested by enterprises and offshore wind power projects with a distance of 50 km or more from the center of the site, investment incentives will be given according to the construction scale of the project, which will be allocated in five years and 20% annually. For offshore wind power projects with offshore distance less than 50km from the center of the site, no reward will be given.

The reward standard for offshore wind power projects with a distance of 50km or more from the center of the site is 500 yuan/kilowatt. The annual award amount of a single project shall not exceed 50 million yuan. The Measures are applicable to the projects put into operation in Shanghai from 2022 to 2026, which will be implemented from December 15, 2022, and will be valid until December 31, 2026.

According to the Implementation Plan for Shanghai’s Carbon Peak in the Energy and Power Sector issued by the Shanghai Municipal Development and Reform Commission on August 11, 2022, Shanghai will focus on the construction of Jinshan, Fengxian and Nanhui sea area projects during the “Fourteenth Five-Year Plan” period, and start the implementation of the million-kilowatt offshore wind power demonstration. During the “Tenth Five-Year Plan” period, we will focus on the construction of projects in Hengsha and Chongming sea areas, and build a far-reaching offshore wind power demonstration. It is expected that the key support objects of the offshore wind power subsidy (incentive) policy will partially cover these projects.

Source: CWEA