China’s state planner has called for more investment in equipment upgrades to help support the energy transition, saying the market should play a leading role.
A Wednesday notice issued by the National Development and Reform Commission calls for a 25 per cent increase in investments to upgrade China’s energy equipment from 2023 to 2027.
The investments will support a program of equipment upgrades and consumer goods trade-ins launched by China’s cabinet in March, the notice said. That program seeks to boost investment and consumption amid a shaky economic recovery.
The energy upgrade plan calls for investment in areas including energy conservation, coal power plant flexibility, and renewable and power grid technologies, all areas Beijing has signaled will be key to the transition away from coal to lower-carbon power.
It also calls for financial institutions to increase their support for equipment upgrades and extend more medium– and long-term loans to the manufacturing industry.
The plan reiterates some existing regulations on equipment upgrades, such as one stating that wind farms older than 15 years, or with less than 1.5 megawatts (MW) of capacity, should be retrofitted.
A cabinet meeting in late July said China would step up support for its program of equipment upgrades, focusing on the energy, electricity and battery sectors.