China will cut the preferential rate it offers wind and solar power developers to reflect the decline in construction costs.
Tariffs for newly-built onshore wind farms will be cut by as much as 4 percent in 2016 from current levels and by another 6 percent in 2018 from 2016 tariff levels, according to a statement posted on the website of the National Development and Reform Commission. Reductions for new solar power projects will be as much as 11 percent in 2016.
China had been mulling the tariff cuts since October. The measures are smaller than those previously proposed for wind power projects, though they’re bigger for solar farms.