[ET Net News Agency, 25 May 2018] The National Energy Administration (NEA) issued a
policy paper yesterday, setting new wind farm projects to be approved in the future to
have their tariffs decided by competitive bidding.
Citi Research said this looks earlier than expected compared to PRC government's
previous target aiming at grid parity (i.e. same tariffs for new wind farms and coal fired
plants) by 2020.
The research house said the new policy is negative to wind farm operators as tariffs
under competitive biddings are generally 10-15% below benchmark ones. Citi calculated net
profits of PRC wind farm operators to trim 2.8% for 2019 and 5.3% for 2020 in the worst
case.
The operators nevertheless believe the impact to be less as they have many approved
projects on hand to be developed in next 2-3 years, Citi added. (KL)
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25/05/2018 15:17
[I-bank focus]New NEA policy negative to wind farm operators
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