Let the (offshore) sun shine in
Beijing's revamped green energy certificates (GEC) program will boost green power consumption.
ICYDK: Eligible renewable energy projects earn GECs for producing energy.
- They can then sell these GECs to companies looking to offset their carbon emissions – giving renewables an extra revenue stream.
On Thursday, regulators expanded the program to make all renewable energy projects eligible.
- Since the program's inception in 2017, only onshore wind and solar projects could earn GECs.
- Now rooftop solar, offshore wind, biomass, geothermal, and
newly built hydropower are eligible.
They're also expanding GECs' usefulness by:
- Allowing end-users to offset carbon emissions traded on the emissions trading scheme (ETS) through GECs
- Including GECs as green power consumption eligible for exemption from energy consumption evaluations
The revamp was sorely needed.
- Thanks to high prices and limited use cases, from 2017 to 2021 users purchased just 0.15% of available certificates.
Get smart: These reforms will boost demand for GECs – and that in turn will be a boon for renewable energy production.
But but but: Market and accounting-related complexities mean it could take years before all changes are implemented.
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