Feb 20, 2008

Southern Mongolia: Financing for Green Energy

China has approved on-grid tariffs for wind farms across the country, including Southern Mongolia, in hopes to promote green energy.

Below is an article published by Forbes:

The National Development and Reform Commission, China's top economic planner, said it has approved on-grid tariffs for 72 wind farms across the country as part of the latest move to promote cleaner forms of energy.

Tariffs will range from 0.51 to 0.61 yuan per kilowatt hour, depending on the quality of the wind resources in each particular province and the investment costs.

Wind farms in northern China's Inner Mongolia region will receive the lowest tariffs, for example, while higher tariffs will be granted to projects in other provinces such as Shanxi in the north and Liaoning in the northeast, the agency said.

The set tariffs will be in place for the first 30,000 operating hours, after which developers will have to pay the average market electricity price.

China has set a target for 10 pct of its energy to come from renewable sources by 2010 and 16 pct by 2020.

Wind energy capacity is expected to reach 5 mln kilowatts by 2010 and 30 mln kilowatts by 2020.