China To Back Solar Plans Of Coal Companies

NEA Wants China’s Fossil Fuel Industry To Invest In Renewable Energy

China To Back Solar Plans Of Coal Companies

The NEA believes getting the fossil fuel power generation industry to build new energy projects such as solar PV will better coordinate coal power and new energy development in China. (Illustrative Photo; Photo Credit: Silarock/Shutterstock.com)

  • NEA has launched a draft regarding guidelines for China’s energy sector that’s open for public consultation
  • It has offered to support coal, oil, gas and other companies build solar PV and other clean energy power generation projects
  • The agency wants the sector to have new energy as the main body of the power system

The National Energy Administration (NEA) of China has offered to support coal, oil, gas and other companies in the country to use their existing resources to build solar PV and other clean energy generation projects, to better coordinate coal power and new energy development. New energy will be the main body of the power system.

In a draft issued to seek public consultation on deepening reforms for decentralization and optimizing the business environment in the energy sector, the NEA said the sector needs to adapt to the country’s commitment of carbon neutrality which China aims to achieve before 2060 (see China Declares Carbon Neutrality Goal By 2060).

The NEA has proposed to establish an energy system that adapts to renewable energy microgrids, and market-oriented transaction of distributed power generation. It also wants to further encourage and optimize the long-term agreement mechanism between energy companies and major users to ensure a stable supply of energy.

To further support the energy sector, it aims to clean up, standardize and simplify administrative filing procedures for new energy projects, and implement ‘unconditional filing’ for new energy projects without subsidies. “Grid companies should support the implementation of clean alternatives, and new energy generation projects that are self-contained and connected to the grid,” reads the draft.

The draft is open for feedback till 30 days from the date of the announcement on September 24, 2021. It is available on the NEA’s website.

What makes this move from the NEA interesting is that China recently said it won’t be constructing any new coal power plants abroad, without mentioning what it plans to do back home (see China Won’t Build New Coal Projects Abroad).

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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