China's National Development & Reform Commission (NDRC) announced on June 30 a plan to raise consumer electricity rates by 2.5 cents per kilowatt hour (KWH). A tiny fraction of the additional charge, 0.1 cent per KWH, will be used to develop renewable energy (RE), a senior NDRC official told Xinhua a few weeks later. This was unprecedented, the official said. The money would be used to cover the portion of RE development costs that are higher than the average for conventional energies. The practice complies with the principle enshrined in the Renewable Energy Law (REL) that the extra costs of renewable energies should be shared by all end users of electricity across the country.
Articles filed under Taxes & Subsidies from Asia
MADRID: Even as Britain, following a detailed review, mulls the need for increased nuclear capacity, Spain has the bit between its teeth as it champions renewable energy.
The lure of China's huge but underexploited market, the government's drive for renewable energy and low production costs for exports to fast-growing bigger markets in the United States and Europe have foreign and domestic firms rushing to set up wind farms or build production plants across the country.
The advantage of investing in a wind turbine [in India] is that 80 per cent of the project cost is considered accelerated depreciation given as a tax benefit for renewable energy during the first year. Editor's Note: Experts estimate that in the USA as much as two-thirds of a wind developer's return on investment is generated by the Production Tax Credit and depreciation allowances. Without these subsidies wind development would be a modest fraction of current levels.