Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 44
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Additionally, the abovementioned 14th
Five-Year Plan particularly highlights the
acceleration of the construction of offshore wind power projects as one of the key
implementation actions. Such key implementation actions include developing and
constructing: (i) clusters of offshore wind
power bases; (ii) far and deep-sea demonstration projects under the background of
parity pricing; (iii) offshore energy island
demonstration projects; and (iv) offshore
wind power combined with marine oil and
gas field demonstration projects.
1.3 Summary of key aspects
To support the growth of electricity demand
and to accelerate its energy transition process, China’s power supply has witnessed a
significant trend on integrating renewable
energy to replace fossil fuel, especially coal.
Offshore wind power projects are expected
to continue to witness a stable growth in the
next years.
The regulatory framework for offshore
wind power projects in China is particularly
challenging because it is comprised of a
complex set of rules at the national and
local level (sometimes inconsistent with
each other) and requires the developers to
go through many formalities with multiple
authorities at different stages of development. One important point to note is that
there is a deadline within which construction of the project must be commenced
after having obtained the project approval,
China
otherwise the authorities can revoke the
project approval and the right of use of the
sea areas. Additionally, there is a mandated
purchase system whereby the power grid
company is required to purchase the entire
output of the offshore wind power plants
connected to its grid. The Implementation
Plan to Promote the High-Quality Development of New Energy in the New Era promotes the replacement of the approval system
for wind power projects with a record-filing
system.10 Pursuant to this plan, on 12 August
2022, Zhangjiakou Municipal Administrative
Approval Bureau issued an announcement
to adjust the existing approval system to
record-filing system for wind power projects
effective from 1 September 2022,11 which
was the first attempt among the local authorities in China.
The Chinese government is reducing the
tariff and subsidies for offshore wind power
projects. The Renewable Energy Development Fund set up by the Ministry of Finance
(MOF) provides subsidies for offshore wind
power projects but such central government’s subsidies are in the process of being
faded out. The MOF, the NDRC, and the NEA
issued the Several Opinions to Promote
the Healthy Development of Non-Aqueous
Renewable Energy Power Generation on 20
January 2020, and a supplemental notice
on 29 September 2020 (Healthy Development Opinions), stipulating that the central
government does not make subsidies available to newly installed offshore wind power
10 "Notice by the General Office of the State Council of Forwarding the Implementation Plan of the National Development and Reform Commission and
the National Energy Administration for Promoting the High-Quality Development of New Energy in the New Era", released by the General Office of the
State Council on 30 May 2022 (http://www.gov.cn/zhengce/content/2022-05/30/content_5693013.htm).
11 "Announcement on the adjustment of wind power projects from the approved system to the record-filing system", released by the Zhangjiakou Municipal Administrative Approval Bureau on 12 August 2022 and effective on 1 September 2022 (https://spj.zjk.gov.cn/content.thtml?contentId=177106).
