Chinese government to allocate 50 billion CNY for renewable energy subsidies

During a State Council meeting presided by Premier Li Keqiang, a CNY 60 billion (USD 7.36 billion) subsidy package was approved to ‘ensure energy supply’. CNY 50 billion will be allocated for renewable subsidies, which will be given exclusively to State Owned Enterprises (SOEs), while another CNY 10 billion will be injected through the state-owned capital operating budget to support coal power enterprises. Such financial support for energy SOEs is part of the government’s focus on ensuring security and reliability of energy supply after China was hit by power crunches last year. This is the second time the State Council hands out such an aid package. This move follows the release of a report by the Ministry of Finance in March which urged to solve the renewable power generation subsidies funding gap.

(China Power)

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