Since late last year, China’s energy policy focus has been shifted from vigorously promoting low carbon transition to stabilizing economy. In this context, the National Development and Reform Commission (NDRC) has stressed in its policy to accelerate the development of large-scale wind and solar PV power installations, particularly in desert areas. The objective for the share of renewable energy in China’s energy mix is to reach 17.3% by the end of 2022, and 20% by the end of 2025.

But the growth of renewable power generation needs more than good intentions. National subsidies for wind and solar PV projects have already been phased out. Presently, power generation companies face a shortfall of unpaid subsidies estimated at the end of 2021 as RMB 500 billion.