China plans to introduce a new renewable energy quota system by the end of the year to better utilize renewable sources and reduce waste, according to a governmental action plan announced Tuesday.
Formulated by the National Development and Reform Commission (NDRC) and the National Energy Administration, the Clean Energy Consumption Action Plan (2018-2020) stipulates that the rate of wasted renewable energy will be reduced from the current level of 12 percent to 5 percent by 2020.
As part of the new quota system, minimum targets of renewable power consumption will be set for each region in China.
Power companies included in the scheme will receive renewable energy certificates when they purchase renewable energy and will be required to buy additional certificates if they fail to meet the mandatory targets.
According to the plan, the NDRC will set up new mechanisms and price-setting policies. The commission will also implement a system that would require local governments to give electricity generated from renewables priority access to the market.
Industrial consumers that have their own power plants will also be encouraged to generate most of their electricity from local renewable sources.
China is the world's largest energy consumer and aims to increase the share of non-fossil energy in total primary energy consumption to 15 percent by 2020 and to 20 percent by 2030.
By Hale Turkes