China enhances financial support for wind and photovoltaic power industries

A wind farm in Fuzhou, east China's Jiangxi Province, September 19, 2019. /CFP

China has offered to provide more financial support to wind and photovoltaic power industries to bolster renewable-energy companies and promote green development.

A statement by National Development and Reform Commission on Friday acknowledged that some renewable-energy companies are facing operating difficulties for a variety of reasons.

To help those firms, financial institutions will be empowered to extend or renew loans or adjust repayment schedules based on the risk control principle as well as independent negotiations. 

Pilot subsidy projects will be rolled out for enterprises with urgent needs that are in basically solid condition. The authorities are also encouraging companies to further explore and innovate and promote their good experiences throughout the country.

The measures are part of the efforts of China to reach the CO2 emissions peak before 2030 and achieve carbon neutrality before 2060.

China's non-fossil fuels accounted for 15.3 percent of its energy consumption in 2019, a year ahead of the schedule promised to the global community.

According to current estimates, if calculated on the basis of 60 million kilowatts of new installed capacity each year, the country's total installed capacity of wind power and photovoltaics will surpass that of coal power by 2025.

Wen Shugang, chairman of China Huadian Corporation, one of the five largest state-owned power producers in China, said earlier this week that the group is planning to have thermal power generation capacity of over 3 gigawatts within five years.

The group will increase renewable energy to half of its total power generation portfolio, according to Wen.

In 2020, China ranked the world's first in newly installed wind capacity amid efforts to pursue greener development, according to the National Energy Administration.

Besides wind energy, the country is also a global leader in the production and use of solar energy and hydropower, among others.