Feed-in tariffs for renewable power and the role of auctions: the Chinese & global experience

摘要

Setting FiTs through an auction process is arguably a necessary move toward achieving the most cost-effective production of renewable energy. With very few exceptions, the use of auctions has resulted in lower prices and subsidies. In China, FiTs typically dropped 10-44% for solar PV projects, and 20-28% for on-shore wind projects due to the use of auctions. Furthermore, the lowest cost solar and wind projects are now generally competitive with local costs of coal power. While this paper has documented a number of positive developments, challenges still exist for China's power sector. This is especially true in key areas like the alleviation of physical & administrative barriers to inter-provincial trade, and the need to expand & adapt the electricity grid to integrate an increasing share of intermittent renewable electricity.