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Price of Renewables Generated Electricity Could Rise As The Subsidy Gap Exceedin

Date:2013-06-28 16:09:00 Author:hnr_admin

Changing from 0.002 yuan to 0.004, and then to 0.008,the surcharge on every kilowatt-hour renewable energy generated electricity was rising continuously and this trend was still moving on.The latest news went that the surcharge would probably be raised from 0.008 yuan/KWh to 0.016. 
  The special fund arranged by national finance,together with surcharge on renewable energy generated electricity,formed the renewable energy development fund of our country,which was set to support the development of renewable energies like wind power and solar energy.In accordance with this arrangement,the Ministry of Finance was in charge of the special fund while the National Development and Reform Commission(NDRC) was operating the surcharge.  
  However,the government supported fund that played an significant role in renewable energy industry had failed to hit its intended target since the first day it was founded.Public digit illustrated that the funding gap had so far reached more than 10 billion yuan.
    Funding Gap Exceeded Over 10 Billion Yuan
    According to incomplete statistics,the gap for renewable energy generated electricity throughout the country reached 1.3 billion yuan in 2009,20b yuan in 2010,and rocketed to over 100b yuan in 2011.
    The vice president of Chinese renewable energy institute,Zhao Yuwen,said in the year of 2012 the special fund given by the Ministry of Finance to the renewable energy fund was 10 billion yuan and the surcharge on electricity was roughly 20 billion yuan.However,with the development of the renewable energy industry,the fund failed to meet the demand of rapidly growing installed capacity.
    When interviewed during the "two sessions" period,Zhu Gongshan,member of CPPCC and the chairman of Xiexin co LTD.,said the lack of guarantee of subsidies and capital was among the current problems with the surcharge on renewable energy generated electricity.He said in 2012 that the overall consumption of electricity in China was 4.6 trillion KWH.Since we charged 0.008 yuan on every kilowatt-hour ,we should have collected a renewable energy surcharge as much as 37 billion yuan.Nevertheless,the fund we collected was only 25 billion yuan with 12 billion was lost.
    In accordance with the twelfth five-year plan,the subsidy for renewable energy industry was no less than 100 billion yuan by the year of 2015.However.based on the current situation,there would be a funding gap of more than $50 billion.
    Officers from National Electrical Supervisor had already said early on that the charging standard of surcharge was pretty low and the allocating of capital was inefficient--usually the lagging could be more than 1 year.With the rapid development of renewable energy industry,the gap would be even bigger.
    The Expansion of Fund Was a Must
    In the year of 2011 when the funding gap reached 10 billion,three departments including the Ministry of Finance and National Development and Reform Commission (NDRC) jointly issued the “Interim Measures for the Collection and Application Administration of Renewable Energy Development Fund",raising the surcharge on electricity to 0.008yuan/KWh.
  Still,problems arose as the Interim Measures did not mention ways of raising money(i.e. annual budget of government) when the development fund was not enough.As a result,the surcharge collecting became an important manner to fill the gap of funding.This strategy was also favored by some insiders.
  Zhu Gongshan considered a proper rise of surcharge according to the requirement of renewable energy development as a method to ensure the fund in place and in full amount.Particularly,he suggested raising the surcharge to 0,015yuan/KWh in 2013 and to 0,02yuan/KWh in 2015.
  As for the effect of adjustment,some experts believed that the expansion of renewable energy development fund would lead to the rise of surcharge,and then to the rise of electricity price.
  After all,the expansion of renewable energy fund was put on schedule.On June 14 the State Council decided to expand the fund in order to guarantee the subsidies in the right place timely

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