Environmental Engineering Reference
In-Depth Information
In Xinjiang, residents can buy similar equipment with a subsidy of 50-200 yuan,
and Qinghai 300 yuan; in Gansu, the subsidy of each PV system is 300 yuan and the
money comes from local tax revenues and a refund of photo electricity [
6
].
The National Economic and Trade Committee supports funding wind power
projects through the national debt.
The Transformation Plan of the National Significant Technology has set up a
fourth project and constructed a wind farm with 80,000 KW generators.
Tax Policy
Value-added taxes could influence the industry on renewable resources and the
enterprises relying on it.
There is no systematical regulations on VAT for renewable resources in China.
However there are some VAT discounts on certain products. The VAT of wind
power generation is 8.5 % [
6
].
Since January 1, 1998, there have been exemptions for tariff VAT of imported
equipment to boost domestic and foreign investments on renewable energy projects.
Other Policies and Laws
The Chinese Government has adopted measures to promote wind power such as the
“Chengfeng Plan”, “Shuangjia Project”, national debt projects and wind power
concession projects along with industry support projects, as well as the “Science
and Technology Research Plan”, “High-Tech Research Plan.”
Renewable energy resources, including wind power, are part of the national
long-term strategy for energy resources in the country. To improve its efficiency, to
import high-quality equipment and to develop renewable resources remain the basic
principles.
These policies provide a broad outlook of the wind power sector. In 1996, former
National Planning Committee, National Science and Technology Committee and
National Economy and Trade Committee had formulated “the Outline of the
Development of New Resources and Renewable Resources (1996~2010).”
The National Development and Reform Committee enacted “the Long-term
Planning for the Development of Renewable Resources” in [
7
], which provides
policy and legal protections for wind power industrialists. The Law of Renewable
Resources of People's Republic of China was enacted in February 2005 and went
into effect on January 1, 2006. 'Wind power development in the 12th Five Year
Plan 'also went into prospects of China's development of wind power in 2020.
Figures suggest that the electricity generated from renewable resources takes
priority on the grid. Companies must agree to purchase at full price from suppliers.
Renewable resources generation is not open to market competition. This elec-
tricity deserves priority to be purchased at state-imposed prices, while the bidding
price by grid enterprises should be priced at a competitive advantage [
15
].
The “Proposed Regulation of the Prices of Electricity Generated by Renewable
Resources and the Share of the Expenses” was enacted in 2006, which makes
specific measures to allocate expenses and the principles to set prices for wind
powered electricity.
