China’s state planner has called for a major increase in investment in the country’s energy network, as the world’s biggest carbon producer bids to increase the pace of its transition to cleaner energy sources.
A notice issued by the National Development and Reform Commission on Wednesday called for a 25% increase in funding to upgrade energy conservation work, coal power plant flexibility, and renewable and power grid technologies equipment, over the next three years.
The areas are ones Beijing has signalled will be key to the transition away from coal to lower-carbon power as the state planners also said the market should play a leading role in the switch.
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The investments would support a programme of equipment upgrades and consumer goods trade-ins launched by China’s cabinet in March, the notice said. That programme seeks to boost investment and consumption amid a shaky economic recovery.
The commission also called for financial institutions to increase their support for equipment upgrades and extend more medium- and long-term loans to the manufacturing industry.
The plan reiterates some existing regulations on equipment upgrades, such as one stating that wind farms older than 15 years, or with less than 1.5 megawatts (MW) of capacity, should be retrofitted.
A cabinet meeting in late July said China would step up support for its programme of equipment upgrades, focusing on the energy, electricity and battery sectors.
- Reuters with additional editing by Sean O’Meara
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