An action plan for high quality development of renewable energy from NDRC and NEA
- An action plan announced by NDRC and NEA to accelerate development of renewable energy
- No new targets under the action plan but pain points to be resolved for faster development
- More financing options for renewable projects is positive for downstream operators, such as China Longyuan (916 HK)
National Development and Reform Commission and National Energy Administration jointly announced an Action Plan for the Acceleration of High Quality Development of New Energy (??????????????????). The Action Plan mainly covers seven key areas, including
1) new development mode for renewable projects (such as large scale projects in deserts and barrens);
2) acceleration of construction of electricity system to accommodate increasing percentage of electricity from renewable projects;
3) decentralization and streamlining rule in renewable sector;
4) healthy development of the supply chain;
5) ensuring sufficient land supply for project development;
6) promote those renewable projects that can restore environmental ecosystem, particularly in rural areas; and
7) allow more financing options for renewable projects.
The Action Plan does not have any new targets. The plans of achieving at least 1200GW of total installation of solar and wind by 2030 and penetration rate of rooftop solar of public organization buildings to be 50% remain intact. However, the Action Plan intends to resolve the pain points in the renewable sector so that faster development can be achieved. It also involves various government departments and more details are expected to follow for execution. We expect all players along the value chain will benefit. In particular, with more financing options for renewable projects (such as green bonds, green loans, REITs), wind and solar farm operators (such as China Longyuan (916 HK)) can accelerate installation.