Renewable Electricity Surcharge

The 2006 Renewable Energy Law stipulates that the additional cost of integrating electricity from renewable energy sources should be shared among the entire electricity system. The 2006 Law then included the Renewable Energy Surcharge, a fixed tariff added to the price of each kWh of electricity sold through the grid. The revenue generated by this premium is then to be splited among power distributors and utilities to balance the higher price they have to pay for electricity from renewable energy sources.

In 2006, the renewable energy Premium amounted to CNY 0.001/kWh, equivalent of USD 0.00015. Successive revisions rose it to CNY 0.004/kWh in 2009 to keep paste with the dramatic increase in electricity generation from renewable sources. 

In December 2011, the Surcharge for electricity generated from renewable energy sources increased to CNY 0.008/kwh, equivalent of USD 0.0012.

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