China to Reduce Renewable Energy Subsidies

China has announced plans to cut renewable energy subsidies as part of broader economic reforms aimed at opening the sector to market forces.

The decision, unveiled by the National Development and Reform Commission (NDRC) on Sunday, reflects China's shift toward a more self-sustaining clean energy industry.

In recent years, China has been gradually reducing government support for renewable energy companies as the sector has expanded.

The country has already surpassed its target of generating at least 1,200 gigawatts of solar and wind power by 2030, highlighting its rapid progress in clean energy adoption.

According to the NDRC, all new renewable energy projects completed after June 1 will be required to sell electricity at market prices, ending the previous system of preferential tariffs that incentivized the transition to cleaner energy sources.

The commission urged energy producers to increase their participation in market transactions and encouraged electricity suppliers and buyers to sign long-term purchase agreements to manage market risks more effectively.

Between 2011 and 2022, China invested over $50 billion in expanding its solar power capacity, according to the International Energy Agency (IEA).

Over the past decade, the Chinese government has introduced multiple measures to gradually phase out public subsidies for renewable energy providers.

In 2021, authorities halted subsidies for new solar power plants and onshore wind projects, signaling a shift toward a market-driven energy sector.

Despite these cuts, China remains the world's largest investor and producer of renewable energy, with continued expansion in solar, wind, and green hydrogen technologies.