In an announcement made by the Ministry of Finance (MoF) at the end of September about the defaulted payment of renewables subsidy, “Green Certificate” trading has been brought to the spotlight as a means to “alleviate subsidy needs through ‘green certificate trading’ and power market trading”.
In parallel, the National Energy Administration (NEA) called for the public bidding of a research and technical project named Policy of REDF Subsidy and Voluntary Green Certificate Purchasing. On October 22, the bidding results were revealed and the project winner goes to China Renewable Energy Engineering Institute (CREE), that which is to complete the project by December 31, 2019.
According to the official website of the green certificate trading platform, there are only 2,153 buyers purchasing 33,337 green certificates, which only account for 33,337MWh of green power. In comparison, wind and solar have generated more than 500TWh within the single year of 2018. Today, the average price of a green certificate is 190RMB/pc; under the huge deficit of renewables subsidy, it remains a question how and when green certificates will compensate for renewables projects’ outstanding payments.