On The Financial Subsidy System Of Renewable Energy Industry

To protect the ecological and address the shortage of traditional energy crisis,the countries all have strong support for the development of the renewable energy industryand develop a range of financial subsidy system. China is no exception. Looking at ourexisting financial subsidy system of the renewable energy industry, including special fundsfor subsidies of the renewable energy, interest payments on loans,price subsidies and taxincentives and so on.Through the implementation of the system of financial subsidies to industry,China has improved the level of renewable energy research, and reduced the price ofelectricity from the renewable energy. Some industries have begun to take the size of themarket, and become a new economic growth point. However, for the influence of theexcessive subsidies and uneven subsidies, some industries have a serious overcapacity. It’s notonly a waste of our economic and social resources, but also prevented the enhancement ofindustrial competitiveness and international market expansion.For the experience of the United States, Germany and other developed countries, Chinashould be based on the different stages of development of the renewable energy, when wedevelop appropriate subsidy policies. We should make a clear goal and refine the system runthe program specification. In particular, China should establish a co-ordination andassessment organization of the renewable energy policy to improve the use of financialsubsidies and regulatory effects.From combing the laws, regulations and policies of the renewable energy in China, thispaper put forward three legislative proposals about Chinese renewable energyindustry financial subsidy system. First of all, we should improve the legal system offinancial subsidies of renewable energy and modify the Basic Law of the financial subsidiesin the renewable energy industry and strengthen local legislation; the State Council shoulddevelop administrative regulations in different renewable energy industry. Second, weshould establish a competitive system of financial subsidies in the renewable energy industry.We should establish the inter-ministerial joint meeting to manage the fund of subsidies inrenewable energy and establish an independent assessment body to supervise the financialoperations. The assessment agencies also should develop a fair assessment practices to protectthe program. Finally, we should improve the supervisory system of financial subsidies in renewable energy industry and establish the Public supervision, administrative supervisionand the authority supervision to guarantee the effective implementation of renewableenergy subsidy system.