Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 51
Offshore Wind Worldwide 2023
generated exceeds the Subsidised Amount,
the amount in excess of the Subsidised
Amount does not receive central government’s subsidies. It is worth noting that for
all the offshore wind power projects eligible
for central government’s subsidies, the central government’s subsidies are no longer
applicable after 20 years from the date on
which the project was connected to the
grid, regardless of whether the Subsidised
Amount has been used up.
The amount of the subsidies is equal to an
amount (Premium) calculated as below:
On-Grid Tariff the Grid Company
pays to purchase the electricity generated
by the plant - benchmark tariff
applicable to electricity generated by coalfired power plants)/
(1 + applicable rate of value-added tax)
The benchmark tariff applicable to electricity generated by coal-fired power plants
is set by the NDRC or its local counterparts
(Local NDRC) periodically pursuant to the
Notice on Reducing the On-grid Coal-fired Power Tariff and General Industrial and
Commercial Electricity Tariff and Circulars and Notices on Matters Concerning
Reasonable Adjustment of the Electricity
Price Structure issued by the Local NDRC.
The plant receives the whole amount of the
On-Grid Tariff (including the Premium) from
the Grid Company and the Grid Company in
turn applies to receive the reimbursement
of the Premium from the Renewable Energy
Development Fund.
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For newly installed offshore wind power
projects that are not entitled to the central government’s subsidies, in order to
continue promoting the development of
offshore wind power projects, certain local
governments started to provide subsidies
for projects within their respective sea areas.
For example, the People’s Government of
Guangdong Province released an implementation plan on 1 June 2021, announcing that
the People’s Government of Guangdong
Province will provide subsidies to projects
within the sea areas of Guangdong Province
that are not eligible for national subsidies.
This provincial subsidy applies to projects
that have been approved before 31 December 2018 and for which grid connection will
be completed during the period from 2022
to 2024. The provincial subsidy is RMB 1,500/
kW, 1,000/kW and 500/kW respectively for
projects for which grid connection will be
completed in 2022, 2023 and 2024. Similarly,
the People’s Government of Shandong Province announced on 1 April 2022 that it will
provide a subsidy of RMB 800/kW, 500/kW,
and 300/kW respectively for projects whose
grid connection will be completed during
the period from 2022 to 2024.
On 19 April 2022, an official document
of Zhoushan Municipality indicated that
Zhejiang Province also provides provincial
subsidies to offshore wind power projects
– the standards for projects grid-connected in 2022 and 2023 are RMB 0.03/kWh in
2022 and RMB 0.015/kWh in 2023. According to the Shanghai Special Fund Support
Measures for Renewable Energy and New
Energy Development jointly released by the
