China to set wind power prices through competitive bidding process
News Archive - Environmental, New & Alternative Energy - April news
The National Development and Reform Commission (NDRC) said that wind power prices will be set through a competitive bidding process organised by the state government, the Shanghai Securities News reported.
The newspaper said the decision is contained in new rules which have been opposed by some domestic wind power firms over fears that the competitive bidding will hit their profits. It quoted Xu Hongliang, general manager of the China Fulin Wind Power Development Co, as saying the new rules will destroy China's wind-fuelled power industry, as power producers will offer very low prices to win bids to supply electricity. "Wind-fuelled generators have been suffering losses, even so the new rules require competitive bidding to set power prices...it will kill China's wind-fuelled power industry," Xu said. According to the newspaper, the new rules stipulate that prices of solar energy power, ocean energy power and geothermal energy power will be set by the government, but not through a competitive bidding process. Local governments are allowed to set the prices of electricity generated by biomass, and are permitted to give out subsidies of 0.25 yuan per kW to biomass power generators, said the newspaper. (1 usd = 8.1 yuan)
source:http://www.spusa.com.cn/english/chinanews/chinanews060116.htm
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