S'abonner

China: Beijing Accelerates the End of Renewable Energy Subsidies

The National Development and Reform Commission (NDRC) has announced a reduction in renewable energy subsidies in China. New projects will now have to sell their electricity at market prices, marking a transition to a more autonomous economic model.

Share:

China is continuing its energy sector reform by gradually limiting public aid to renewable energies. The National Development and Reform Commission (NDRC) has confirmed that projects completed after June 1 will no longer benefit from preferential rates. This decision is part of the strategy to liberalize the electricity market and aims to encourage industry players to adapt to market conditions.

A Sector Reaching Maturity

In recent years, the Chinese government has progressively reduced financial support for renewable energy companies, considering that the industry has reached a critical size. With more than 1,200 gigawatts of installed solar and wind capacity, the initial target set for 2030 has already been exceeded, reinforcing the need for a self-sustaining economic model.

Transitioning to Market-Based Contracts

The NDRC now encourages electricity producers and buyers to enter into long-term purchase agreements, allowing them to better manage market risks. This approach aims to stabilize revenue streams for clean energy players while ensuring a competitive and diversified supply.

A Policy Shift Initiated in 2021

The gradual withdrawal of subsidies is not an isolated measure. As early as 2021, China had already ended public financial support for new solar power plants and onshore wind projects. Between 2011 and 2022, more than $50 billion was invested in solar capacity development, illustrating the sector’s growth before its full integration into a competitive market.

Challenges of a More Competitive Market

The phased elimination of subsidies could reshape the balance of China’s energy market. Companies must now optimize their competitiveness without state support, which could alter investment structures and lead to strategic consolidations. How energy suppliers adapt to this new dynamic will be crucial in sustaining sector growth.

  • Populaires ​
MN8 Energy raises $575mn with Natixis CIB to strengthen its US solar debt
Carbon2Nature and Uría Menéndez launch reforestation of 90 hectares in Salamanca
TNB, Petronas and Terengganu Inc launch green hydrogen hub and hybrid solar in Malaysia
Occidental Petroleum reduces production in the Gulf of Mexico in the second quarter
Azule Energy announces major offshore gas discovery in the Angolan Congo Basin
Trump mobilises USD92bn in private investment for AI and electricity in the United States
Nearly USD92bn will be invested by major American and international groups in new data centres and energy infrastructure, responding to the surge in electricity demand linked to the rise of artificial intelligence.
Outages in Nouakchott expose weaknesses in Mauritania’s power grid
Nouakchott has endured lengthy power interruptions for several weeks, highlighting the financial and technical limits of the Mauritanian Electricity Company as Mauritania aims to widen access and green its mix by 2030.
Multilateral climate funds redirect energy finance towards emerging markets
Between 2015 and 2024, four multilateral climate funds committed nearly eight bn USD to clean energy, attracting private capital through concessional terms while Africa and Asia absorbed more than half of the volume.
Governments extend their stockpiles to cover 98 % of global oil
The Global Energy Policies Hub shows that strategic reserves, gas obligations, cybersecurity and critical-mineral policies are expanding rapidly, lifting oil coverage to 98 % of world imports.
Chinese trade-in programme cuts air-conditioning bills by $943mn
According to a report by Ember, the Chinese government’s appliance trade-in campaign could double residential air-conditioner efficiency gains in 2025 and trim up to USD943mn from household electricity spending this year.
Washington considers tariffs on solar-grade silicon and drones
Washington is examining sectoral taxes on polysilicon and drones, two supply chains dominated by China, after triggering Section 232 to measure industrial dependency risks.
Terna plans EUR3.5bn investment to modernise Sicily’s electricity grid by 2034
The 2025-2034 development plan presented by Terna includes strengthening Sicily’s grid, new interconnections, and major projects to support the region’s growing renewable energy capacity.
Terna and NPC Ukrenergo sign strategic agreement for European energy integration
Terna and NPC Ukrenergo have concluded a three-year partnership in Rome aimed at strengthening the integration of the Ukrainian grid into the pan-European system, with an in-depth exchange of technological and regulatory expertise.
GE Vernova modernises TransnetBW’s key cross-border power hub in Germany
GE Vernova has secured a major contract to modernise the Kühmoos substation in Germany, enhancing grid reliability and integration capacity for power flows between Germany, France and Switzerland.
Britain anticipates massive surge in electricity demand by 2050
The National Energy System Operator forecasts electricity demand to rise to 785 TWh by 2050, underlining the need to modernise grids and integrate more clean energy to support the UK’s energy transition.
Terna secures €1bn in guarantees with SACE and EIB for Adriatic Link project
Terna has signed a guarantee agreement with SACE and the European Investment Bank to finance the Adriatic Link project, totalling approximately €1bn ($1.08bn) and validated as a major transaction under Italian regulations.
India reforms oil contracts to attract more international investors
India unveils a series of reforms on oil and gas contracts, introducing a fiscal stability clause to enhance the sector’s attractiveness for foreign companies and boost its growth ambitions in upstream energy.
The European Union commits EUR2.3bn to accelerate Ukraine’s energy reconstruction
The European Commission is launching a special fund of EUR2.3bn ($2.5bn) to boost Ukraine’s reconstruction and attract private capital to the energy and infrastructure sectors.
Asia accounts for 71% of new renewable capacity, Africa remains marginalised
Asia dominated global new renewable energy capacity in 2024 with 71% of installations, while Africa recorded limited growth of only 7.2%, according to the latest annual report from IRENA.
Trump law reshapes US energy markets according to Wood Mackenzie
US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
The French Senate adopts the Gremillet bill for energy transition
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Latin America’s six largest economies accelerate transition to renewables
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
Canada funds 13 Indigenous energy projects with $40mn investment
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
Germany extends electricity price aid to 2,200 companies
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
Czech Republic hit by massive power outage disrupting the economy
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING