At the end of 2019, China dominated the world's generation
of installed capacity and consumption of renewable energy, with
wind power capacity accounting for one third of the world's
total and PV power capacity accounting for one fourth.
1 China has invested more in clean
energy infrastructure than the United States and the European Union
combined.
2
This article discusses current issues facing the industry and
its regulatory regime amid its rapid expansion.
Background
The rapid and large-scale development of renewable energy
projects has largely benefitted from a national feed-in-tariff
("FIT") support scheme introduced in
2012 under which power generated from renewable sources is
purchased at a fixed price higher than coal-fired power, with the
price difference subsidised by the Renewable Energy Development
Fund (the "Fund") set up by the central
government. The FIT scheme has propelled an installation rush,
making China the largest renewable generator in
