Renewable Energy Law amendments

In the course of 2009, the 2006 Renewable Energy Law experienced several amendments. First, the new regulation legally binds electricity grid companies to buy the whole renewable electricity generation and guarantees priority power dispatching to power produced from renewable sources. Grid companies are simultaneously expected to improve transmitting technologies and enhance grid capacity to further facilitate the integration of electricity from renewable sources. In the case of non-compliance with the imposed electricity purchasing mandate, the regulation initiates a penalty system. Responsive companies are required to pay a fine of an amount equal to double the economic lost undergone by renewable electricity producers. Second, the amendment entitles the State Council energy and finance departments, in collaboration with the state power regulatory agency, with the design of annual renewable energy power generation targets. Third, the amendment to the 2006 Renewable Energy Law initiates the Special Fund for Renewable Energy that will finance research and development and support mini and off-grid renewable electricity generation projects in rural and remote areas. In addition, the Special fund will act as a central mechanism allocating government funding and redistributing the Renewable Energy Premium, a subsidy set up in 2006 to balance the extra cost of integrating renewable-sourced power.

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