China sets high waste-to-energy price to encourage renewable development

China’s efforts to promote the development of renewable energy will see the developers of waste-to-energy plants handsomely rewarded under new proposals announced this week.

The price for electricity generated from waste-to-energy plants will be set at double that of what is paid to coal-fired power stations, according to the National Development and Reform Commission.

Waste-to-energy plant developers will be rewarded 0.65 yuan (10 US cents) a kilowatt-hour, compared to the 0.3 to 0.4 yuan a kilowatt-hour paid to the traditional coal-powered plants.

The electricity price set for waste-to-energy plants is higher than wind power projects, yet lower than that of solar. Wind-power projects are paid 0.61 yuan a kilowatt-hour, while solar developers are paid a minimum of 1 yuan a kilowatt-hour, according to Bloomberg New Energy Finance.

“It’s the first time that China has established a fixed price for waste-to-power plants,” said New Energy Finance analyst Jessica Ng.

“It will help energy companies to share the cost burden of the feedstock.”

China, the world’s largest carbon emitter, is planning to reduce its emissions of carbon dioxide by 17 percent as part of its five-year plan in the lead up to 2015. The Asian country intends to produce 15 percent of its energy from renewable sources by the end of the decade.

 

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Image 02: eutrophication & hypoxia | Flickr