China relaxes rules on the use of renewable energy – China Economic Review

China has eased restrictions on the use of renewable energy in energy-rich areas, allaying fears that grid congestion could slow the pace of renewable installations, a report says Bloomberg. The move is one of several government policies released Wednesday aimed at promoting clean energy. Others include accelerating battery installations and accelerating the construction of power lines. Beijing has also called for a stricter approval process for some types of clean energy production amid overcapacity that has slashed corporate profits.

The new policy serves China’s current goals of reducing nationwide energy consumption and carbon dioxide emissions per unit of GDP in 2024 by 2.5% and 3.9%, respectively. The government’s top economic planning agency admitted at a briefing on Thursday that it has not met its targets and will likely miss the 13.5% reduction in energy intensity by 2025 envisaged in the current five-year plan.

Shares of Chinese clean energy companies rose significantly on the back of the policies outlined in the State Council’s action plan. Polysilicon maker GCL Technology Holdings rose as much as 10% in Hong Kong, while wind farm operator China Longyuan Power Group gained as much as 6.1%.