China announced that it will pay $1.4 billion in subsidies to power companies for electricity generated by renewable energy, bolstering cash flows for project developers, and helping meet its goal of cutting carbon emissions by 17% per unit of GDP by 2015, says Bloomberg.
The government will provide $947 million for wind-power, $320 million for biomass-energy projects, and $133 million to subsidize solar farms.
At the same time, China is adding $1.1 billion in subsidies and doubling the support it provides to its solar power sector, taking this year’s support to $2 billion, as China looks to possibly double its solar capacity target to 40GW, according to Reuters. This, in effect, represents a bailout of its of its solar panel manufacturing industry due to diminished export sales, said Raymond James analyst Pavel Molchanov
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