China reduces solar and wind power prices

China reduces solar and wind power prices
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The funds allocated by the Chinese government to newly constructed solar and wind power generators for their electricity are planned to be cut for the purpose to reflect declines in construction costs, Bloomberg reports with the reference to the country’s price regulator.

The reduction in tariffs paid to solar farms will amount to 19% next year, compared to the current levels, and to 15% for wind farms in 2018 compared to the present-day prices.

Thus, the subsidies paid to new photovoltaic and wind power projects are expected to be cut by approximately 6 billion yuan ($863 million) per year.

At present, average solar panel prices have dropped by 30% in 2016, what led to a decrease in the bids on the part of solar developers.