China Renewable Energy Law of the People S Republic of China 2005

1/11/2020 Renewable Energy Law of the People's Republic of China (President Order No. 33)

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Chinese government portal www.gov.cn June 21, 2005 Source: Xinhua News Agency

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People's Republic of China Presidential Decree No. 33

The "Renewable Energy Law of the People's Republic of China" was adopted by the Fourteenth Meeting of the Standing Committee of the Tenth National People's Congress of the People's Republic of China on February 28, 2005. It is hereby promulgated and will be implemented on January 1, 2006 .

Hu Jintao

, President of the People's Republic of China February 28, 2005

Renewable Energy Law of the People's Republic of China (adopted at the 14th meeting of the Standing Committee of the Tenth National People's Congress on February 28, 2005)

table of Contents

General Provisions Chapter II resources survey and development planning Chapter III industry guidance and technical support Chapter promotion and application of Chapter V price management and cost-sharing Chapter VI of economic incentives and monitoring measures Chapter VII Legal Liability Chapter VIII Supplementary clause

Chapter I General Provisions

Article 1 This Law is enacted in order to promote the development and utilization of renewable energy, increase energy supply, improve energy structure, ensure energy security, protect the environment, and achieve sustainable economic and social development. Article 2 The term "renewable energy sources" as used in this Law refers to non-fossil energy sources such as wind energy, solar energy, water energy, biomass energy, geothermal energy, and ocean energy. www.gov.cn/ziliao/flfg/2005-06/21/content_8275.htm 1/6 1/11/2020 Renewable Energy Law of the People's Republic of China (President Order No. 33) The application of hydropower to this Law shall be prescribed by the energy authority of the State Council and submitted to the State Council for approval. This method is not applicable to the use of straw, fuelwood, feces, etc. by direct combustion of a low-efficiency stove. Article 3 This Law applies to the territory of the People's Republic of China and other sea areas under its jurisdiction. Article 4 The state regards the development and utilization of renewable energy as a priority area for energy development, and through the establishment of total renewable energy development and utilization targets and corresponding measures, the establishment and development of renewable energy markets is promoted. The state encourages economic entities of all forms of ownership to participate in the development and utilization of renewable energy, and protects the legitimate rights and interests of those who develop and utilize renewable energy in accordance with the law. Article 5 The competent energy department of the State Council exercises unified management over the development and utilization of renewable energy throughout the country. Relevant departments of the State Council are responsible for the management of renewable energy development and utilization within their respective responsibilities. The energy management department of the local people's government at or above the county level is responsible for the management of renewable energy development and utilization within its administrative area. Relevant departments of local people's governments at or above the county level are responsible for the management of the development and utilization of renewable energy within their respective responsibilities.

Chapter II Resource Investigation and Development Planning

Article 6 The competent department of energy under the State Council is responsible for organizing and coordinating the survey of renewable energy resources nationwide, and in conjunction with the relevant departments of the State Council, organizes the formulation of technical specifications for resource surveys. Relevant departments of the State Council are responsible for the investigation of related renewable energy resources within their respective responsibilities, and the results of the investigation are reported to the energy department of the State Council for summary. The results of surveys on renewable energy resources should be made public; except for those that are required by the state to be kept confidential. Article 7 The competent department of energy of the State Council shall, in accordance with the national energy demand and the actual status of renewable energy resources, formulate national mid-to- long-term targets for the development and utilization of renewable energy, which shall be implemented after being approved by the State Council and announced. The energy authority of the State Council shall, in accordance with the total targets set out in the preceding paragraph and the actual conditions of economic development and renewable energy resources of provinces, autonomous regions and municipalities directly under the Central Government, determine the long-term targets for renewable energy development and utilization in each administrative region in conjunction with the people ’s governments of provinces, autonomous regions and municipalities, To be announced. Article 8 The competent energy department of the State Council shall, in accordance with the

www.gov.cn/ziliao/flfg/2005-06/21/content_8275.htm 2/6 1/11/2020 Renewable Energy Law of the People's Republic of China (President Order No. 33) national medium- and long-term total target for the development and utilization of renewable energy, work with the relevant departments of the State Council to prepare a national renewable energy development and utilization plan, which shall be implemented after approval by the State Council. The energy management departments of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government, in accordance with the long-term targets for the development and utilization of renewable energy in their respective administrative regions, will work with the relevant departments of the people's governments at the corresponding levels to formulate plans for the development and utilization of renewable energy in their respective administrative regions. Implementation. Approved plans shall be announced; however, except those that are required by the state to be kept confidential. If the approved plan needs to be modified, it must be approved by the original approval authority. Article 9 The formulation of plans for the development and utilization of renewable energy sources shall involve the opinions of relevant units, experts and the public for scientific demonstration.

Chapter III Industry Guidance and Technical Support

Article 10 The competent energy department of the State Council shall, in accordance with the national renewable energy development and utilization plan, formulate and publish a directory for the development of renewable energy industries. Article 11 The standardization administrative department of the State Council shall formulate and publish national grid-connected technical standards for renewable energy and other national standards for renewable energy technologies and products that require uniform technical requirements across the country. For technical requirements not specified in the national standards specified in the preceding paragraph, the relevant departments of the State Council may formulate relevant industry standards and report them to the standardization administrative department of the State Council for the record. Article 12 The State shall make scientific and technological research and industrialization development of renewable energy development and utilization as the priority areas for the development of science and technology and high-tech industries, incorporate them into national science and technology development plans and high-tech industry development plans, and arrange for funding to support renewable Scientific and technological research, application demonstration and industrialization development of energy development and utilization, promote the technological progress of renewable energy development and utilization, reduce the production cost of renewable energy products, and improve product quality. The education administration department of the State Council shall incorporate renewable energy knowledge and technology into the general education and vocational education courses.

Chapter IV Promotion and Application

Article 13 The State encourages and supports the grid-connected generation of renewable energy. To construct a renewable energy grid-connected power generation project, an administrative license shall be obtained or submitted for record in accordance with the law and the regulations of the State Council. For the construction of a renewable energy grid-connected power generation project that requires an administrative license, if more than one person applies for the same project license, the licensee shall be determined through bidding according to law. Article 14 A grid company shall sign a grid connection agreement with a renewable energy power www.gov.cn/ziliao/flfg/2005-06/21/content_8275.htm 3/6 1/11/2020 Renewable Energy Law of the People's Republic of China (President Order No. 33) generation enterprise that has obtained an administrative license or filed a record in accordance with the law, and shall purchase the full amount of grid-connected power of renewable energy grid-connected power generation projects within its grid coverage, and shall be renewable. Energy generation provides Internet access. Article 15 The state supports the construction of independent renewable power systems in areas not covered by the power grid, and provides power services for local production and living. Article 16 The State encourages the clean and efficient development and utilization of biomass fuels and the development of energy crops. If the gas and heat produced by using biomass resources meet the technical standards for urban gas networks and heat pipes, the enterprises operating gas pipes and heat pipes shall accept them. The state encourages the production and use of biological liquid fuels. Petroleum sales enterprises shall incorporate bio-liquid fuels that meet national standards into their fuel sales system in accordance with the provisions of the State Council ’s energy department or the provincial people ’s government. Article 17 The State encourages units and individuals to install and use solar energy utilization systems such as solar water heating systems, solar heating and cooling systems, and solar photovoltaic power generation systems. The construction administrative department of the State Council, together with relevant departments of the State Council, shall formulate technical and economic policies and technical specifications for the combination of solar energy utilization systems and buildings. A real estate development enterprise shall provide necessary conditions for the use of solar energy in the design and construction of buildings in accordance with the technical specifications specified in the preceding paragraph. For completed buildings, residents can install solar energy utilization systems that comply with technical specifications and product standards without affecting their quality and safety; however, unless the parties agree otherwise. Article 18 The State encourages and supports the development and utilization of renewable energy in rural areas. The energy management department of the local people's government at or above the county level will work with relevant departments to formulate renewable energy development plans in rural areas based on local economic and social development, ecological protection and comprehensive health management needs, and promote the application of biogas resources such as biogas according to local conditions Transformation, domestic solar energy, small wind energy, small hydropower and other technologies. People's governments at or above the county level shall provide financial support for renewable energy utilization projects in rural areas.

Chapter V Price Management and Expense Allocation

Article 19 The on-grid electricity price of renewable energy power generation projects shall be determined by the price authority of the State Council in accordance with the characteristics of different types of renewable energy power generation and the conditions in different regions, in accordance with the principles that are conducive to the promotion of renewable energy development and economic use, and Make timely adjustments based on the development of renewable energy development and utilization technologies. On-grid electricity prices should be announced. The on-grid electricity price of renewable energy power generation projects that are subject to bidding in accordance with Article 13 (3) of this law shall be implemented at the price determined by the

www.gov.cn/ziliao/flfg/2005-06/21/content_8275.htm 4/6 1/11/2020 Renewable Energy Law of the People's Republic of China (President Order No. 33) successful bidding; Level. Article 20 The costs incurred by a grid company in purchasing renewable energy based on the on-grid price determined in accordance with Article 19 of this Law are higher than the difference between the costs incurred in the calculation of the average on-grid electricity price of conventional energy generation and are added to the sales price Apportion. The specific measures shall be formulated by the competent price department of the State Council. Article 21 Reasonable grid connection fees and other reasonable related fees paid by grid companies for the purchase of renewable energy power may be included in the grid transmission costs and recovered from the sales price. Article 22 The sales price of public renewable energy independent power systems invested or subsidized by the state shall be implemented in accordance with the classified sales price in the same region. Where the reasonable operation and management costs exceed the sales price, the provisions of Article 20 of this Law shall be followed. Method of sharing. Article 23 The prices of renewable energy heat and gas entering the urban pipeline network shall be determined according to the price management authority in accordance with the principles that are conducive to promoting the development and utilization of renewable energy and economically reasonable.

Chapter VI Economic Incentives and Supervision Measures

Article 24 The state finance establishes special funds for renewable energy development to support the following activities: (1) scientific and technological research, standard formulation and demonstration projects for renewable energy development and utilization; (2) rural and pastoral areas Renewable energy utilization projects; (3) Construction of independent power systems for renewable energy in remote areas and islands; (4) Exploration, evaluation and construction of related information systems for renewable energy resources; (5) Local promotion of renewable energy development and utilization equipment化生产。 Production. Article 25 Financial institutions may provide preferential loans with financial discounts for renewable energy development and utilization projects that are included in the national renewable energy industry development guidance catalog and meet the credit conditions. Article 26 The State grants preferential taxation to projects included in the directory for the development of renewable energy industries. The specific measures by the State Council. Article 27 Electric power enterprises shall truthfully and completely record and maintain relevant information on renewable energy power generation, and accept inspection and supervision by electric power regulatory agencies. The inspection by the electric power supervision agency shall be conducted in accordance with the prescribed procedures, and the business secrets and other secrets shall be kept for the units under inspection.

Chapter VII Legal Liability

Article 28 The energy department in charge of the State Council, the local people's government at or above the county level and other relevant departments in the supervision and management of the development and utilization of renewable energy violate the provisions of this law and commit one of the following acts the people's government or the higher people's government departments ordered to correct, www.gov.cn/ziliao/flfg/2005-06/21/content_8275.htm 5/6 1/11/2020 Renewable Energy Law of the People's Republic of China (President Order No. 33) responsible person in charge and other directly responsible shall be given administrative sanctions; constitutes a crime, criminal responsibility shall: (a) does not make administrative licensing decision in accordance with law; ( (2) Failing to investigate and punish illegal acts; (3) Other acts that fail to perform supervision and management duties according to law. Article 29 In violation of the provisions of Article 14 of this Law, if a power grid company fails to fully purchase renewable energy power and causes economic losses to the renewable energy power generation enterprise, it shall be liable for compensation and shall be ordered to make corrections within a time limit by the State Electricity Regulatory Agency; Failure to make corrections shall result in a fine of less than double the economic loss of the renewable energy power generation enterprise. Article 30 In violation of the second paragraph of Article 16 of this Law, an enterprise operating a gas pipeline network or heat pipeline network shall not allow gas or heat to meet the technical standards for network access, and cause economic losses to the gas and heat production enterprise, and shall bear Compensation liability, and the energy management department of the provincial-level people's government shall order correction within a time limit; those who refuse to make corrections shall be fined up to twice the economic loss of the gas and heat production enterprises. Article 31 In violation of the provisions of Article 16, paragraph 3 of this Law, an oil sales enterprise that fails to incorporate bio-liquid fuels that meet national standards into its fuel sales system and causes economic losses to the bio-liquid fuel production enterprise shall be liable for compensation And the energy management department of the State Council or the provincial people's government in charge of energy work orders to make corrections within a time limit; those who refuse to make corrections shall be fined up to twice the economic loss of the bio-liquid fuel production enterprise.

Chapter VIII Supplementary Provisions

Article 32 The meanings of the following terms in this Law: (1) Biomass energy refers to energy converted from natural plants, feces, and urban and rural organic waste. (2) Renewable energy independent power system refers to a separately operated renewable energy power system that is not connected to the power grid. (3) Energy crops refer to herbs and woody plants that are specially planted to provide energy raw materials. (4) Bio-liquid fuels refer to liquid fuels such as methanol, ethanol, and bio-diesel produced using biomass resources. Article 33 This Law shall enter into force on January 1, 2006.

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