By Paul Homewood
h/t Joe Public
China is struggling to pay billions of yuan in subsidies to renewable power generators following a rapid expansion of capacity, a planning agency official said this week.
Wind and solar power capacity has grown faster than expected in the last five years because of preferential policies that include higher tariffs paid for cleaner electricity, as the world’s biggest coal consumer tries to encourage alternative forms of energy.
But Zhi Yuqiang, deputy director responsible for price regulation at the National Development and Reform Commission (NDRC), said developers face a possible shortfall of 60 billion yuan ($9 billion) in subsidy payments this year owed to them by the government.
The subsidy gap had already reached around 55 billion yuan by mid-year, he told an industrial conference in Beijing on Tuesday, according to a transcript of his remarks obtained by Reuters.
“As the scale…
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