China Doubles Power Sales Surcharge to Subsidize Renewable Energy

China will double a surcharge on power sales to 0.008 yuan/kWh to subsidize renewable power generation, the NDRC announced on 1 Dec 11. According to the government agency, the revenue from an existing surcharge, at 0.004 yuan/kWh, is not enough to cover the difference that power grid operators pay for electricity output from renewable power developers.

Though not as dramatic and significant as the NDRC's announcement of a national feed-in tariff on August, this doubling of the power sales surcharge is another indication China is serious about developing a domestic renewable energy sector.