Government and Policy

China adopts amendment to renewable energy law

(Xinhua)
Updated: 2009-12-26 17:00

BEIJING: China's top legislature adopted Saturday an amendment to the renewable energy law to require electricity grid companies to buy all the power produced by renewable energy generators.

The amendment says the State Council energy department and the state power regulatory agency should supervise the purchases.

The amendment, approved by lawmakers after it was heard the second time at a five-day meeting of the National People's Congress (NPC) Standing Committee, aims to support the country's fledgling renewable energy sector.

It said the State Council energy department, in conjunction with the state power regulatory agency and the State Council finance departments, should "determine the proportion of renewable energy power generation to the overall generating capacity for a certain period."

Power enterprises refusing to buy power produced by renewable energy generators will be fined up to an amount double that of the economic loss of the renewable energy company, it said.

Renewable energy includes non-fossil fuels such as wind and solar power, hydropower, biomass, geothermal and ocean energy.

Still, two-thirds of China's energy supply is fueled by coal, and the country has become one of the largest greenhouse gas emitters.

The law, which took effect in January 2006, was aimed at "optimizing the country's energy structure and safeguarding energy security."

It covered subsidies, pricing management and supervision measures.