BEIJING, June 19 China's power grids will pay
0.75-0.85 yuan ($0.12-0.14) per kilowatt-hour for electricity
produced by offshore wind turbines, the country's state planning
agency said on Thursday in a bid to encourage more investment in
The National Development and Reform Commission (NDRC) said
in a notice on its website (www.ndrc.gov.cn) the on-grid tariff
would be paid to wind farms completed and put into operation
Prices for projects launched after 2017 will be adjusted in
accordance with technological improvements and changes in costs,
the NDRC said.
China has used variable tariffs to encourage cleaner power
generation. Last year, it set a benchmark tariff of 0.43 yuan
per kilowatt hour for nuclear power, and also raised tariffs for
coal-fired power plants that had installed clean technologies.
Analysts with China's CI Consulting, an industrial research
firm, said in a note that while the new price would not
completely cover the current costs of offshore wind
installation, it would ease worries that electricity generated
by offshore wind power would be refused by the grid.
The NDRC notice said the policy was designed to encourage
the development of China's rich offshore wind resources.
Offshore capacity stands at just 400 megawatts at present,
amounting to less than 0.5 percent of China's total wind
China's total installed wind capacity stood at 82.27
gigawatts by the end of May, up 23.1 percent on the year and
amounting to 6.6 percent of the national total.
($1 = 6.2090 Chinese yuan)
(Reporting by David Stanway; Editing by Joseph Radford)