Offshore Wind Worldwide 2022 edition - Flipbook - Page 28
28
Hogan Lovells
China
projects under construction. Encouragingly,
these goals have been achieved and even
exceeded. China has officially issued the 14th
Five-Year Plan for Renewable Energy
Development that also covers wind power,
and has not yet been released to the public.5
According to the 13th Five-Year Plan,
profitability is still the main factor affecting
the development of the wind power sector.
The costs associated with the development
and maintenance of wind power projects are
higher than those of traditional fossil fuel
power projects. Wind power projects are
heavily dependent on the availability of
government subsidies and policy support,
and can therefore be easily affected by
changes to regulations and government
policies. Pursuant to the Special
Administrative Measures (Negative List) for
Foreign Investment Market Access (2021
Version) (Nationwide Negative List) and the
Special Administrative Measures (Negative
List) for Foreign Investment Market Access
in Pilot Free Trade Zones (2021 Version)
(FTZ Negative List) jointly released by the
National Development and Reform
Commission (NDRC) and the Ministry of
Commerce (MOFCOM) on 27 December
2021 and effective on 1 January 2022,
together with the Encouraged Foreign
Investment Industry Catalogue (2020
Version) (Encouraged Catalogue) jointly
released by the NDRC and the MOFCOM on
27 December 2020 and effective on 27
January 2021, 100 % foreign ownership of
wind power projects is permitted, and
investment in the renewable energy sector,
including wind power, is encouraged.
B. Expectations of future
developments in the market
until 2030 and beyond6
The China Renewable Energy Outlook 2019,
released by the Energy Reform Institute of
the NDRC and the China National
Renewable Energy Centre in February 2020,
sets out China’s intermediate and long-term
renewable energy goals based on two
scenarios shown in the following table: (i)
Stated Policies Scenario and (ii) Below 2°C
Scenario. The Stated Policies Scenario
assumes the full implementation of the
applicable governmental policies for the
energy sector as stated by the 13th Five-Year
Plan and the 19th National Congress of the
Communist Party of China. The Below 2°C
Scenario pursues the more demanding
emissions reduction goals enshrined in the
Paris Agreement.
5
The 13th Five-Year Plan for Wind Power Development’, published by National Energy Administration on 16 November 2016 (http://www.
gov.cn/xinwen/2016-11/30/content_5140637.htm); ‘The “14th Five-Year” renewable energy development plan will be released soon: key
points’, published by CSPPLAZA on 15 December 2021 (http://www.cspplaza.com/article-21144-1.html).
6
The information in this section is primarily quoted from China Renewable Energy Outlook 2019, published by Energy Research Institute of
Academy of Macroeconomic Research and NDRC China National Renewable Energy Centre on 18 October 2019 (https://www.thinkchina.
ku.dk/documents/CREO-2019-EN-Final-0316.pdf).