Renewable Energy Law of the People's Republic of  China (2005)


(Adopted at the 14th Meeting of the Standing Committee of the Tenth National People’s Congress on February 28, 2005)

Contents

Chapter I　General Provisions
Chapter II　Resources Surveys and Development Plans
Chapter III　Guidance for the Industry and Technical Support
Chapter IV　Promotion and Application
Chapter V　Price Control and Expenses Sharing
Chapter VI　Economic Incentives and Supervisory Measures
Chapter VII　Legal Responsibility
Chapter VIII　Supplementary Provisions

Chapter I　General Provisions

Article 1 The Law is enacted in order to promote the exploitation of renewable energy, increase
energy supply, improve the energy structure, ensure energy safety, protect the environment,
and attain the sustainable development of the economy and society.

Article 2 For the purposes of this Law, renewable energy means non-fossil energy,
including wind energy, solar energy, water energy, biomass energy, geothermal energy and
ocean energy.

Application of this Law to hydropower generation shall be subject to regulation by energy
administration department under the State Council and approval by the State Council.

This Law is not applicable to utilization of straw, firewood, excrement, etc. through direct
burning in low-efficiency stove.

Article 3 This Law is applicable in the territory of the People’s Republic of China and
the sea areas under its jurisdiction.

Article 4 In energy development, the State gives
first priority to the exploitation of renewable
energy and promotes the establishment and
expansion of the market for renewable energy by
setting objectives for the total volumes of the
renewable energy to be exploited and taking
appropriate measures.

The State encourages economic entities of
various ownerships to participate in the
exploitation of renewable energy and protects
the lawful rights and interests of the
exploiters of renewable energy in accordance
with law.

Article 5 The energy administration department
under the State Council exercises unified
control over the exploitation of renewable
energy nationwide. The relevant departments
under the State Council are responsible for
administration of the work related to the
exploitation of renewable energy within the
limits of their respective duties.

The energy administration departments of the
local people’s governments at or above the
county level are responsible for the
administration of exploitation of renewable
energy within their respective administrative
areas. The relevant departments of the local
people’s governments at or above the county
level are responsible for administration of the
work related to the exploitation of renewable
energy within the limits of their respective
duties.

Chapter II　Resources Surveys and Development
Plans

Article 6 The energy administration department
under the State Council is responsible for
organizing and coordinating surveys of renewable
energy resources throughout the country, and
work with the related departments under the
State Council to lay down technical
specifications for resources surveys.

The relevant departments under the State Council
are responsible for related resources surveys of
renewable energy within the limits of their
respective duties and submit the results of the
surveys to the energy administration department
under the State Council.

The results of the surveys of renewable energy
shall be released to the public, with the
exception of the contents which should be kept
confidential according to State regulations.

Article 7 The energy administration department
under the State Council shall, on the basis of
the demand for energy and the actual conditions
of the renewable energy resources throughout the
country, set medium-to-long term objectives for
the total volumes of the renewable energy to be
exploited nationwide, which shall be embarked on
and released to the pubic upon approval by the
State Council.

The energy administration department under the
State Council shall, on the basis of the
objectives for total volumes mentioned in the
preceding paragraph and the economic development
and the actual conditions of the renewable
energy resources of the provinces, autonomous
regions, and municipalities directly under the
Central Government, work with the people’s
governments of the provinces, autonomous
regions, and municipalities directly under the
Central Government to set medium-to-long term
objectives for the exploitation of renewable
energy in the different administrative areas and
release the objectives to the public.

Article 8 The energy administration department
under the State Council shall, on the basis of
the medium-to-long term objectives for the total
volumes of renewable energy to be exploited
throughout the country, work with the relevant
departments under the State Council to draw up a
national plan for exploitation of renewable
energy which shall be carried out upon approval
by the State Council.

The energy administration departments of the
people’s governments of provinces, autonomous
regions, and municipalities directly under the
Central Government shall, on the basis of the
medium-to-long term objectives for the
exploitation of renewable energy in their own
administrative areas, work with the relevant
departments of the people’s governments at the
corresponding level to draw up plans for the
exploitation of renewable energy in their own
administrative areas, which shall be carried out
upon approval by the people’s governments at the
corresponding levels.

The approved plans shall be released to the public, with the exception of the contents which
should be kept confidential according to State regulations.

Where an approved plan needs to be modified, the matter shall be subject to approval by the
original approving authorities.

Article 9 For drawing up a plan for exploitation of renewable energy, opinions of the relevant
units, specialists and the public shall be solicited, and scientific demonstration is
necessary.

Chapter III　Guidance for the Industry and Technical Support

Article 10 The energy administration department under the State Council shall, in accordance
with the national plan for exploitation of renewable energy, compile and publish a
development guidance catalogue of the renewable energy industry.

Article 11 The administrative department for standardization under the State Council shall
set and publish the technical standards of the State for grid- connected power generation with
renewable energy and other standards of the State for the technology and products related to
renewable energy, for which the technical requirements need to be uniform throughout the
country.

With regard to those technical requirements which are not covered by the standards of the
State as mentioned in the preceding paragraph, the relevant departments under the State Council
may establish relevant industrial standards, which shall be submitted to the administrative
department for standardization under the State Council for the record.

Article 12 In scientific and technological
development and in the department of the hi-tech
industries, the State gives first priority to
scientific and technical research in, and the
industrialized development of, exploitation of
renewable energy, includes such research and
development in the national plan for scientific
and technological development and the
development of the hi-tech industries, and
allocates funds for scientific and technical
research in, and application, demonstration and
industrialized development of, the exploitation
of renewable energy, so as to promote technical
advancement in the exploitation of the same,
reduce the production cost of renewable energy
products and improve product quality.

The administrative department for education
under the State Council shall include knowledge
and technology of renewable energy into the
curriculum of general and vocational education.

Chapter IV　Promotion and Application

Article 13 The State encourages and supports
grid-connected power generation with renewable
energy.

For construction of projects for grid-connected
power generation with renewable energy,
administrative license shall be obtained, or the
matter shall be submitted for the record, in
accordance with law and the regulations of the
State Council.

Where there are more than one person that apply
for construction of the same project for
grid-connected power generation with renewable
energy, for which administrative license need be
obtained, the licensee shall be determined
through bid invitation according to law.

Article 14 The power grid enterprise shall sign
a grid-connection agreement with the enterprise
of power generation with renewable energy that
has legally obtained an administrative license
or has submitted the project to be constructed
for the record, and buy the entire quantity of
the grid-connected power generated with
renewable energy within the coverage of their
power grids, and provide grid-connection
services for the generation of power with
renewable energy.

Article 15 The State supports construction of
independent system of power generated with
renewable energy in areas not covered by power
grids, so that power services shall be provided
for local production and people’s daily needs.

Article 16 The State encourages clean and
efficient exploitation of biological fuel and
the development of energy crops.

Where gas and heat produced with biological
resources conform to the technical standards for
connection with urban gas pipeline networks or
heat pipeline networks, the enterprises
operating gas pipeline networks and heat
pipeline networks shall accept them into the
networks.

The State encourages production and utilization
of biological liquid fuel. Petroleum sales
enterprises shall, in compliance with the
regulations of energy administration department
under the State Council or people’s governments
at the provincial level, include biological
liquid fuel that conforms to State standards in
their fuel-selling system.

Article 17 The State encourages units and
individuals to install and use solar energy
utilization systems, such as solar water-heating
system, solar heating and cooling system and
solar photovoltaic system.

The administrative department for construction
under the State Council shall work with the
relevant departments under the State Council to
formulate technical and economic policies and
technical specifications for combination of
solar energy utilization system with buildings.

In the design and construction of buildings,
real estate development enterprises shall, in
compliance with the technical specifications
mentioned in the preceding paragraph, provide
the necessary conditions for the utilization of
solar energy.

For the existing buildings, the residents may,
on condition that the quality and safety of the
buildings are not affected, install solar energy
utilization system that conforms to the
technical specifications and product standards,
unless the parties have agreed otherwise.

Article 18 The State encourages and supports
exploitation of renewable energy in rural areas.


The energy administration departments of local
people’s governments at or above the county
level shall, in light of local economic and
social development, the need for comprehensive
improvement of ecological protection and public
health and other actual conditions, work with
the relevant departments to draw up plans for
development of renewable energy in rural areas,
in order to promote the wide use of the
technologies for conversion of biomass energy
like marsh gas, for household solar energy,
small-scale wind energy and small-scale
hydraulic energy.

People’s governments at or above the county
level shall provide financial support for
renewable energy utilization projects in rural
areas.

Chapter V　Price Control and Expenses Sharing

Article 19 Grid-connected power price of
renewable energy power generation projects shall
be determined by the price administration
department under the State Council in light of
the characteristics of power generated with
different types of renewable energy and the
conditions of different areas and on the
principle that it is beneficial to the promotion
of exploitation of renewable energy and that it
is economically reasonable, and timely
readjustment shall be made along with the
development of technology for exploitation of
renewable energy. The price for grid-connected
power shall be made known to the public.

The price of grid-connected power generated by
renewable energy power projects decided on
through bid invitation as stipulated in the
third paragraph of Article 13 of this Law shall
be the bid-winning price; however, it shall not
exceed the price level of grid-connected power
of similar renewable energy power generation
projects determined in accordance with the
provisions of the preceding paragraph.

Article 20 Where the expenses incurred by a
power grid enterprise in the purchase of
grid-connected power generated with renewable
energy at the price as determined in accordance
with the provisions of Article 19 of this Law
are in excess of the expenses for the purchase
of grid-connected power generated with
conventional energy, calculated at the average
price, the difference shall be added to the
selling price by way of sharing. The specific
measures in this regard shall be formulated by
the price administration department under the
State Council.

Article 21 The reasonable grid connection
expenses paid by power grid enterprises for the
purchase of power generated with renewable
energy and other reasonable expenses involved
may be included in the power transmission cost
of the enterprise and recovered from the selling
price.

Article 22 For the selling price of power for
public use generated from independent renewable
energy power system invested or subsidized by
the State, classified selling price of the same
area shall be adopted, and the part of the
expenses for rational operation and management
that is in excess of the selling price shall be
shared in accordance with the provisions in
Article 20 of this Law.

Article 23 The price of heat and gas from
renewable energy that enter the urban pipeline
networks shall be determined within the limits
of the power of price control and on the
principle that it is beneficial to the promotion
of exploitation of renewable energy and that it
is economically reasonable.

Chapter VI　Economic Incentives and Supervisory
Measures

Article 24 The State establishes a special fund
for the development of renewable energy in
support of the following:

(1) scientific and technological research,
formulation of standards and demonstration
engineering for the exploitation of renewable
energy;

(2) projects for the use of renewable energy in
people’s daily lives in rural and pasturing
areas;

(3) construction of independent systems of power
generated with renewable energy in outlying
areas and on islands;

(4) surveys, assessments of renewable energy
resources, and　　　construction of relevant
information systems; and

(5) promotion of localized production of
equipment for exploitation of renewable energy.

Article 25 Financial institutions may offer
preferential loans with financial interest
subsidy to projects for exploitation of
renewable energy that are listed in the national
development guidance catalogue of the renewable
energy industry and meet the requirements for
granting loans.

Article 26 The State grants preferential
taxation to projects listed in the development
guidance catalogue of the renewable energy
industry. The specific measures in this regard
shall be formulated by the State Council.

Article 27 Power enterprises shall truthfully
and completely record and keep the data
regarding the generation of power with renewable
energy and shall accept inspection and
supervision by power regulatory institutions.

Power regulatory institutions shall conduct
inspection in accordance with specified
procedures and shall keep business and other
secrets for the inspected units.

Chapter VII　Legal Responsibility

Article 28 Where, when exercising supervision
over the exploitation of renewable energy, the
energy administration department under the State
Council, the energy administration department of
a people’s government at or above the county
level, or any other relevant department commits
one of the following acts in violation of the
provisions of this Law, it shall be ordered by
the people’s government at the corresponding
level or the relevant department of the people’s
government at the next higher level to rectify,
and the persons in charge who are responsible
and the other persons who are directly
responsible shall be given administrative
sanctions according to law; and if a crime is
constituted, criminal responsibility shall be
investigated according to law:

(1) failure to make decisions on granting
administrative license according to law;

(2) failure to investigate illegal activities
discovered; and

(3)other failures in performing regulatory
duties according to law.

Article 29 Where in violation of the provisions in Article 14 of this Law, a power grid
enterprise fails to purchase the entire quantity of power generated with renewable energy, thus
causing economic losses to the enterprise of power generated with such energy, it shall bear
the responsibility for compensation, and the power regulatory institution of the State shall
order it to rectify within a time limit; if it refuses to comply, it shall be fined not more
than the amount of the economic losses suffered by the enterprise of power generated with
renewable energy.

Article 30 Where in violation of the provisions of the second paragraph of Article 16 of this
Law, an enterprise of gas pipeline network or heat pipeline network refuses to accept into the
network gas or heat that conforms to the technical standards for grid connection, thus
causing economic losses to the gas or heat production enterprise, it shall bear the
responsibility for compensation, and the energy administration department of the people’s
government at the provincial level shall order it to rectify within a time limit; if it refuses
to comply, it shall be fined not more than the amount of the economic losses suffered by the
gas or heat production enterprise.

Article 31Where in violation of the provisions of the third paragraph of Article 16 of this
Law, a petroleum sales enterprise fails to include biological liquid fuel that conforms to
State standards in its fuel-selling system, thus causing economic losses to the biological liquid
fuel production enterprise, it shall bear the responsibility for compensation, and the energy
administration department under the State Council or the energy administration department
of the people’s government at the provincial level shall order it to rectify within a time
limit; if it refuses to comply, it shall be fined not more than the amount of the economic
losses suffered by the biological liquid fuel production enterprise.

Chapter VIII　Supplementary Provisions

Article 32 The meanings of the following terms used in this Law are:

(1) Biomass energy means energy converted from natural plants, excrement as well as urban and
rural organic waste.

(2) An independent system of power generated with renewable energy means the system of power
generated with renewable energy that is not connected to power grids and that operates
independently.

(3) Energy crops mean herbal and woody plants specially planted and used as raw materials of
energy.

(4) Biological liquid fuels include methanol,
ethanol, bio-diesel and other liquid fuels
derived from biomass resources.

Article 33 This Law shall go into effect as of January 1, 2006.