(Yicai Global) Jan. 6 -- China, the world's largest energy market, can achieve price parity for electricity generated from wind and solar power projects by 2020 because costs have dropped as the nation's renewable energy technology has developed rapidly in recent years, according to the National Energy Administration.
By setting a target the government aims to prompt suppliers to cut costs as quickly as possible through innovation and development in an effort to reduce reliance on state subsidies, NEA Deputy Director Li Yangzhe said at a press conference yesterday.
China sets electricity feed-in tariffs for wind farms and photovoltaic (PV) power plants higher than benchmark rates for traditional thermal power stations in a bid to encourage new-energy power generation. It plans to lower feed-in tariffs as subsidies are becoming unsustainable. The gap in renewable energy subsidies reached CNY55 billion (USD7.96 billion) in the first half of last year.
Bidding prices for demonstration projects of the 'PV Leader' campaign launched by China this year turned out to be substantially lower than what was expected and it reflects the enormous innovation and development potential of renewable energy technology, Li said.
The National Energy Administration expects renewable energy sources to account for about 15 percent of China's total energy use by 2020.