China’s offshore wind power costs set to undercut coal power price
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For the first time this year, the price of offshore wind power in China will fall below that of coal-generated electricity. The government has approved numerous renewable energy projects, which has caused this change.
A 306-megawatt wind farm off the coast of Shanghai has received official approval to supply electricity at a price 27% lower than the benchmark price for coal-generated power, according to a local media outlet.
This wind farm is part of a series of projects anticipated to increase China’s offshore wind generation capacity significantly.
According to BloombergNEF, these efforts are expected to triple the country’s offshore wind capacity, reaching 129 GW by 2030.
This development highlights China’s commitment to expanding its renewable energy infrastructure and reducing its reliance on coal power.
Read more: Renewable energy costs plummet in Asia Pacific, outpacing fossil fuels
The 3-billion-yuan ($410 million) project, which will install 36 turbines within the year, is jointly owned by Chinese energy giants China Three Gorges Corp., China National Offshore Oil Corp., and a Shanghai-based investor.
The auctioned on-grid tariff for the project was set at 0.302 yuan per kWh, marking it as the first project of its kind in China to offer electricity at a lower price than coal power.
BNEF analyst Xiangyu Chen told Bloomberg, “It begins a new era for offshore wind to compete with coal at even lower prices.”
Local manufacturers have faced production delays due to intense competition and price battles. Meanwhile, onshore renewable energy projects have seen their profits shrink because electricity from renewables has become cheaper than ever before.
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