| Through regulating prices and providing fiscal subsidies in supply side,the feed-in tariff subsidy system has been the major promotion scheme for renewable electricity(RE)in China.However,it encounters substantial difficulties in stimulating demand for RE and balancing RE demand and supply.Moreover,with the development of RE,the system has become rigid in further lowering generating costs of RE.Quota-based tradable green certificate(TGC)schemes impose quota obligations of consuming RE on electricity suppliers,thermal power stations and enterprises with self-provided power plants.The obliged parties must own enough green certificates to fulfill the quota obligations via purchasing RE,buying certificates from RE generators or other authorized traders,or generating RE.Quota-based certificate trading schemes hence enable the cost of meeting quotas to be reduced while promote the consumption of RE.TGC schemes have been in place in several Member States of the European Union.The legal framework varies in Member States,but typically involving quota obligations,regulations for certificates trading,market stabilization mechanisms.There are multiple lessons could be learned from the EU’s TGC schemes.Firstly,TGC schemes in Member States implicate that “banding” is necessary to provide different levels of support to groups of RE generating technologies based on their relative maturity.Secondly,feed-in tariff(FIT)schemes might be used for small-sized generating stations while the quota trading schemes provide major support for large and middle sized generators.Thirdly,a range of market stabilization mechanisms should be set to mitigate detrimental impacts caused by volatility of certificate prices.Fourthly,regulations for certificates trading and penalties for the obliged parties who do not have sufficient certificates should be developed.Based on lessons learned from the EU’s Member States,for strengthening enforcement of Renewable Development Goals,the Renewable Energy Law of China should be amended to specify rights,obligations and penalties related to the legally-binding goals.Furthermore,for introducing TGC schemes,the Renewable Energy Law should state renewables quota obligations and corresponding penalties,and authorize the National Development and Reform Commission and National Energy Administration to elaborate measures of implementing TGC schemes.Legalization of current policies of renewables quotas and voluntary certificate trading may help the establishment of a TGC legal framework in China.The mechanisms for using TGC schemes,FIT and emission trading schemes in a coordinated manner,regulations of issuing certificates and certificates trading are yet to be built. |
