NDRC Approves On-Grid Sale Price for 72 Wind Power Projects in China

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Researched by Industrial Info Resources (Sugar Land, Texas)--The National Development and Reform Commission (NDRC) announced on February 19, 2008, that it has approved the on-grid sale price for 72 wind power projects in China:

•Three in Hubei Province
•Nine in Heilongjiang and Liaoning provinces
•39 in Inner Mongolia
•20 in the Shanxi, Ningxia and Xinjiang regions
•One in Fujian Province

According to the NDRC, prices will be based on average investment cost and the conditions of wind resources. The lowest price (including tax) among these projects is about $0.071 per kilowatt-hour (kWh)in the Inner Mongolia and Xinjiang regions, and the highest price is $0.085 per kWh in northeastern China and Shanxi Province. These prices will only be valid for the first 30,000 hours of operation starting from when the project goes into on-grid operation. The local average on-grid price determined by the price administration department will be applied to projects after 30,000 hours of operation.

The report also specifies that for regions with united on-grid prices approved by the NDRC for wind power, the price of franchised operation for wind power determined by provincial development and reform commissions through bidding will not be higher than the price approved by the NDRC. The NDRC also requests that grid enterprises prioritize wind power generation.

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