Govt to withdraw financial support for wind, photovoltaic power projects

Wind turbines whirl to generate electricity at a wind farm in Alashankou city, Bortala Mongol autonomous prefecture, northwest China's Xinjiang Uygur autonomous region, Dec 25, 2016.

The National Development and Reform Commission released on its website Wednesday the first batch of wind power and photovoltaic power generation projects that will no longer enjoy financial support from the government.

The projects, totaling 20.76 million kilowatts in installed capacity, were from 16 provinces, municipalities, and autonomous regions.

The move is expected to increase the market competitiveness of wind power and photovoltaic power generation companies, said Han Xiaoping, chief researcher at energy analysis website China5e.

"Currently wind power and photovoltaic power generation cost a lot less compared to the past, due to technology innovation and a price drop in power generation equipment. There is little need for them to receive government subsidies to keep businesses running," Han said.

Han explained that in the past, the cost of wind power and photovoltaic power generation was much higher than that of fossil fuel power generation; as a result, the former was less welcomed by grid companies, which projected great challenges for the country to promote clean energy.

"Power transmission of such clean energies is also challenging and cost more for grid companies due to their instability, which was another reason why the industry needed financial support from the government. Now the situation is also improving," Han said.