The Circular of the National Development and Reform Commission Concerning Printing and Distribution of the Trial Measures for Administration on Price and Expense Allocation of Electricity Generation from Renewable Energy

The Circular of the National Development and Reform Commission Concerning Printing and Distribution of the Trial Measures for Administration on Price and Expense Allocation of Electricity Generation from Renewable Energy

Fa Gai Jia Ge [2006] No. 7

January 4, 2006

The National Development and Reform Commissions, Price Bureaus, electricity companies at all provinces, autonomous regions and municipalities directly under the Central Government, State Grid Corporation of China and China Southern Electricity Grid Co., Ltd.,

In order to promote the development and utilization of renewable energy, our Commission have, in accordance with the Law of the People's Republic of China on Renewable Energy, conducted research and formulated the Trial Measures for Administration on Price and Expense Allocation of Electricity Generation from Renewable Energy, which are hereby printed and distributed to you and shall be implemented accordingly. For any problem found in the implementation, please report to our Commission in a timely manner.

Appendix: Trial Measures for Administration on Price and Expense Allocation of Electricity Generation from Renewable Energy

Chapter I General Provisions

Articles 1 In order to promote the development of the industry of electricity generation from renewable energy, these Measures have been formulated in accordance with the Law of the People's Republic of China on Renewable Energy and the Pricing Law of the People's Republic of China.

Article 2 The scope of application of these Measures is as follows: electricity generation from wind electricity, electricity generation from biolobic materials (including electricity generation from direct firing and gasification of agricultural and forestry waste, electricity generation from gas of refuse burning and landfill and biogas electricity generation), solar electricity generation, electricity generation from ocean energy and geothermal energy. The existing provisions shall be implemented for the price of hydraulic electricity generation temporarily.

Article 3 These Measures shall be implemented for the renewable energy electricity generation projects which are within the territory of the People's Republic of China and authorized by or approved for construction by the government authorities of People's Government in and after the year 2006; and the existing pertinent provisions shall be implemented for the projects authorized by or approved for construction by the government authorities of People's Government before December 31, 2005.

Article 4 The standards of price and expense allocation of electricity generation from renewable energy are formulated subject to the principle of promoting development, improving efficiency, standardizing management and equal bearing.

Article 5 There are two measures for the price of electricity generation from renewable energy: governmental pricing and guidance price of the government.
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