China's renewable capacity additions recover after policy changes

Source: Xinhua| 2019-08-10 15:18:36|Editor: Lu Hui
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BEIJING, Aug. 10 (Xinhua) -- China's wind and solar capacity additions recovered as recent policies cleared the wait-and-see approach of many renewable companies, Fitch Ratings says in its latest report.

New solar installation recovered in the second quarter as solar projects approved in 2018 were required to start operations before July 2019 to qualify for a higher feed-in tariff.

Meanwhile, wind capacity additions, which were 58 percent higher in the second quarter from the same period last year, are likely to maintain growth throughout the year as wind-farm developers are rushing to finish projects before 2020 to secure the higher feed-in tariff approved before 2019, according to the report.

The government has since April incentivized the grid parity for unsubsidized wind and solar projects.

In addition, the pricing mechanism for subsidised utility-scale solar and wind projects changed in July 2019 from the previous government-prescribed feed-in tariffs to bidding-determined prices, which equals the thermal feed-in tariff plus subsidy.