Research and Policy Recommendations on the Arrears Issues in New Energy Subsidies

Over the past few years, the healthy development of new energy industry and enterprises has been seriously impacted and restrained by prominent subsidy related issues such as subsidy delays and the growing arrears of subsidies, which also caused damages to the governmental credit. Hence, CEC conducted an in-depth study on the arrears issues of new energy subsidies to look into the deep-down reasons behind arrears. Various methods and approaches were proposed to safeguard the high quality development of new energy industry, such as:

▪ the issuing of dedicated bonds for new energy development;

▪ speeding up the implementation of renewable quota system;

▪ accelerating the establishment of power spot trading market;

▪ expediting on issuing detailed rules and regulations on the grid parity operation of existing renewable energy projects;

▪ promoting green certificates trading. 

In addition, the research offered opinions and suggestions on speeding up the construction for new energy infrastructure and overall planning. The research report has been submitted to related  department authorities as references for decision-making and got positive feedbacks.