China's Ministry of Finance recently issued a notice on additional Subsidies worth over CNY 2.7 billion (USD 403 million) for renewable energy electricity prices in 2022. 11 provinces and cities were included.
China's Ministry of Finance recently issued a notice on allocating the budget of local funds for additional subsidies for renewable energy electricity prices in 2022. More than CNY 2.75 billion (USD 403 million) has been invested. This includes CNY 1.47 billion (USD 219 million) for wind power, CNY 1.25 billion (USD 186.9 million) for photovoltaic and CNY 28.9 million (USD 4.3 million) for biomass, Cailian Press reported.
11 provinces and cities including Shanxi, Inner Mongolia, Jilin, Zhejiang, Hunan, Guangxi, Chongqing (city), Sichuan, Guizhou (city), Yunnan, Gansu, Qinghai and Xinjiang have been granted additional subsidies for renewable energy electricity prices by now, according to the notice.
In recent years, in order to achieve sustainable development, countries have made great efforts to develop new energy such as wind power and photovoltaic. So has China. The new energy strategy has been a vital part of its national strategy. It was estimated that wind power and photovoltaic power generation would account for about 12.2% of the total electricity consumption in China in 2020.
The Chinese government will continue its subsidies and preferential policies to support the renewable energy industry. This will be of great help to promote green development and environmental protection further.
Yingda Securities claimed that under such circumstances, wind turbine prices are expected to stabilize and return to normal profit levels. Besides, the prices of crude oil and commodities are beginning to loosen globally, and the prices of raw materials for wind power are expected to rebound in the future. If the prices of raw materials fall, it will have a positive impact on the profitability of the wind power industry chain.