Order of the President of the People’s Republic of China

No. 23

The Decision of the Standing Committee of the National People's Congress on Amending the Renewable Energy Law of the People's Republic of China, adopted at the 12th Meeting of the Standing Committee of the Eleventh National People's Congress of the People's Republic of China on December 26, 2009, is hereby promulgated and shall go into effect as of April 1, 2010.

Hu Jintao

President of the People's Republic of China

December 26, 2009

Decision of the Standing Committee of the National People's Congress on Amending the Renewable Energy Law of the People's Republic of China

(adopted at the 12th Meeting of the Standing Committee of the Eleventh National People's Congress of the People's Republic of China on December 26, 2009)

At its 12th Meeting, the Standing Committee of the Eleventh National People’s Congress decided to make the following amendments to the Renewable Energy Law of the People's Republic of China:

1. The first paragraph of Article 8 is revised to read, “The competent energy department of the State Council shall, on the basis of the medium and long-term target of the total volume for the national development and utilization of renewable energy and the development status of the renewable energy technologies, work with the relevant departments of the State Council to prepare national renewable energy development and utilization plan, which is to be implemented after being approved by the State Council.”

One paragraph is added as the second paragraph, which reads, “The relevant departments of the State Council shall formulate relevant plans that are conducive to promoting the realization of the medium and long-term target of the total volume for the national development and utilization of renewable energy.”

The original second paragraph is changed as the third paragraph and revised to read, “The energy administrative departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall, on the basis of the national renewable energy development and utilization plan and the medium and long-term target for the development and utilization of renewable energy in their own administrative regions, work with the relevant departments of the people's governments at their own level to prepare renewable energy development and utilization plan for their own administrative regions, which shall be implemented after being approved by people's governments at their own level and submitted to the competent energy department of the State Council and the national power regulatory authority for filing.”

The original third and fourth paragraphs are respectively changed as the fourth and fifth paragraph in order.

2. Article 9 is revised to read, “The renewable energy development and utilization plan shall be formulated and coordination and arrangement shall be made for the development and utilization of renewable energies such as wind energy, solar energy, water energy, biomass energy, geothermal energy and ocean energy under the principles of taking actions to suit local circumstances, coordinating to take into consideration every aspect of the matter, reasonable arrangement and orderly development. The content of the plan shall include development objectives, major tasks, regional arrangement, key projects, implementation progress, construction of ancillary grids, service systems and protection measures.

“The authorities that organize the formulation of the plan shall consult the opinions of the relevant entities, experts and the public and the scientific verification shall be made.”

3. Article 14 is revised to read, “The State implements a system guarantying full purchase of power generated by renewable energy.

“The competent energy department of the State Council together with the national power regulatory authority and the finance department of the State Council shall, based on the national renewable energy development and utilization plan, determine the ratio of the power that can be generated by renewable energy during the planning period to the total power generated and formulate the specific measures for the power grid enterprises in prioritized dispatch and full purchase of power generated by renewable energy, which shall be implemented on an annual basis under the supervision of the competent energy department of the State Council and the national power regulatory authority.

“Power grid enterprises shall enter into grid connection agreement with renewable power generation enterprises that are established based on the renewable energy development and utilization plan and have obtained administrative permit or for which filing has been made according to the law, and purchase all the on-grid power produced by the grid-connected projects of power generation with renewable energy which is within the coverage of their power grid and meets the grid-connection technological standard. The power generation enterprise has the obligation to cooperate with the power grid enterprises to ensure the safety of the grids.

“Power grid enterprises shall strengthen grid construction, expand the distribution area of power generated by renewable energy, develop and apply such technologies as smart grids and energy saving technologies, improve the management of grid operation, increase the ability to absorb power generated by renewable energy and provide grid-connection service for the generation of power with renewable energy.”

4. The title of the fifth chapter is revised as “Price Management and Fee Compensation”.

5. Article 20 is revised to read, “The excess of the expenses incurred by a power grid enterprise purchasing power generated by renewable energy at the on-grid price determined in accordance with the provisions of Article 19 of this Law over the expenses incurred on the basis of average on-grid price of power generated by conventional energy shall be compensated by the surcharge of the renewable energy price charged on the sales of power throughout the country.”

6. Article 22 is revised to read, “For the selling price of power generated from independent public renewable power system invested or subsidized by the State, classified selling price of the same area shall be adopted, and the excess of its reasonable operation and management expenses over the selling price of power shall be compensated in accordance with the provisions of Article 20 of this Law.”

7. Article 24 is revised to read, “A renewable energy development fund is established with the State budget. The source of funding includes specialized funds arranged by the State for the financial year and the surcharge of renewable power price charged in accordance with the law.

“The renewable energy development fund is used to compensate the difference in the expenses as stipulated in Article 20 and Article 22 of this Law and is used to support the following:

“(1) Scientific and technological research, standard establishment and pilot project for the development and utilization of renewable energy;

“(2) Renewable energy utilization projects in rural and pasturing areas;

“(3) Construction of independent renewable power systems in remote areas and islands;

“(4) Surveys and assessments of renewable energy resources and the construction of relevant information systems; and

“(5) promotion of localized production of equipment for the development and utilization of renewable energy.

“A power grid enterprise that cannot recover the grid connection expenses and other relevant expenses prescribed in Article 21 of this Law through the selling price of power may apply for subsidy from the renewable energy development fund.

“The specific measures for the collection, utilization and management of the renewable energy development fund shall be formulated by the finance department of the State Council in conjunction with the competent energy and price departments of the State Council.”

8. Article 29 is revised to read, “If a power grid enterprise breaches the provisions of Article 14 of this Law and fails to complete the purchase of renewable power in accordance with the provisions, which results in economic loss to the renewable power generation enterprise, such power grid enterprise shall be liable for compensation and be ordered by the national power regulatory authority to make rectification within a time limit. In case of refusal to make rectification, a fine of not more than one time the economic loss of the renewable power generation enterprise shall be imposed.”

This Decision shall go into effect as of April 1, 2010.

The Renewable Energy Law of the People's Republic of China shall be revised and the order of the articles shall be rearranged correspondingly in accordance with this Decision, and the Law shall be promulgated anew.

Renewable Energy Law of the People's Republic of China

(Adopted at the 14th Meeting of the Standing Committee of the Tenth National People's Congress on February 28, 2005, and amended according to the Decision on Amending the Renewable Energy Law of the People's Republic of China adopted at the 12th Meeting of the Eleventh National People's Congress on December 26, 2009)

Contents

Chapter I General Provisions

Chapter II Resource Survey and Development Plan

Chapter III Industry Guidance and Technology Support

Chapter IV Promotion and Application

Chapter V Price Management and Fee Compensation

Chapter VI Economic Incentives and Supervisory Measures

Chapter VII Legal Liabilities

Chapter VIII Supplementary Provisions

Chapter I

General Provisions

Article 1 In order to promote the development and utilization of renewable energy, increase energy supply, improve energy structure, safeguard energy security, protect the environment and realize the sustainable development of the economy and society, this Law is hereby enacted.

Article 2 For the purposes of this Law, renewable energy shall mean such non-fossil energy as wind energy, solar energy, water energy, biomass energy, geothermal energy and ocean energy.

Application of this Law in hydropower shall be prescribed by the competent energy department of the State Council and approved by the State Council.

This Law does not apply to the direct burning of straw, firewood and dejecta on low-efficiency stoves.

Article 3 This Law applies to the territory of the People's Republic of China and other sea areas under its jurisdiction. Article 4 The State specifies the development and utilization of renewable energy as the priority in energy development and promotes the establishment and development of the renewable energy market by setting the total volume target for the development and utilization of renewable energy and taking corresponding measures.

The State encourages economic entities of all ownerships to participate in the development and utilization of renewable energy and protect the legitimate rights and interests of the developers and users of renewable energy in accordance with the law.

Article 5 The competent energy department of the State Council implements uniform management for the national development and utilization of renewable energy. The relevant departments of the State Council are responsible for the management of the development and utilization of renewable energy within their respective scope of duties.

The energy administrative departments of the local people's governments above the county level are responsible for the management of the development and utilization of renewable energy within their own administrative regions. Relevant departments of the local people's governments above the county level are responsible for the management of the development and utilization of renewable energy within their respective scope of duties.

Chapter II

Resource Survey and Development Plan

Article 6 The competent energy department of the State Council shall be responsible for organizing and coordinating national surveys on renewable energy resources, and work with the relevant departments of the State Council to formulate technical regulations for resource surveys.

The relevant departments of the State Council are responsible for the relevant renewable energy resource surveys within their respective scope of duties. The survey results shall be summarized by the competent energy department of the State Council.

The results of the survey of renewable energy resources shall be released to the public, with the exception of confidential contents as stipulated by the State.

Article 7 Based on the national energy demand and the actual situations of the renewable energy resources, the competent energy department of the State Council sets medium and long-term target of the total volume for the national development and utilization of renewable energy, which shall be implemented and released to the public after being approved by the State Council.

The competent energy department of the State Council shall, on the basis of the target of total volume prescribed in the previous paragraph, as well as the economic development and actual situations of renewable energy resources of all provinces, autonomous regions and municipalities directly under the Central Government, cooperate with people's governments of provinces, autonomous regions and municipalities directly under the Central Government in establishing medium and long-term targets for the development and utilization of renewable energy in each administrative regions and release the targets to the public.

Article 8 The competent energy department of the State Council shall, on the basis of the medium and long-term target of the total volume for the national development and utilization of renewable energy and the development status of the renewable energy technologies, work with the relevant departments of the State Council to prepare national renewable energy development and utilization plan, which is to be implemented after being approved by the State Council.

The relevant departments of the State Council shall formulate relevant plans that are conducive to promoting the realization of the medium and long-term target of the total volume for the national development and utilization of renewable energy.

The energy administrative departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall, on the basis of the national renewable energy development and utilization plan and the medium and long-term target for the development and utilization of renewable energy in their own administrative regions, work with the relevant departments of the people's governments at their own level to prepare renewable energy development and utilization plan for their own administrative regions, which shall be implemented after being approved by people's governments at their own level and submitted to the competent energy department of the State Council and the national power regulatory authority for filing.

The approved plan shall be released to the public, with the exception of confidential content as stipulated by the State.

In the event that the approved plan needs to be modified, approval of the original approving authorities shall be obtained.

Article 9 The renewable energy development and utilization plan shall be formulated and coordination and arrangement shall be made for the development and utilization of renewable energies such as wind energy, solar energy, water energy, biomass energy, geothermal energy and ocean energy under the principles of taking actions to suit local circumstances, coordinating to take into consideration every aspect of the matter, reasonable arrangement and orderly development. The content of the plan shall include development objectives, major tasks, regional arrangement, key projects, implementation progress, construction of ancillary grids, service systems and protection measures.

The authorities that organize the formulation of the plan shall consult the opinions of the relevant entities, experts and the public and the scientific verification shall be made.

Chapter III

Industry Guidance and Technology Support

Article 10 The competent energy department of the State Council shall, based on the national renewable energy development and utilization plan, prepare and publish the development guidance catalogues for renewable energy industries.

Article 11 The standardization administrative departments of the State Council shall set and publish the national technical standard for grid connection of power generated by renewable energy and other national standards for relevant renewable energy technology and products for which technical requirements need to be standardized at the national level.

For those technical requirements not prescribed in the national standard specified in the previous paragraph, relevant departments of the State Council may establish relevant industrial standards, which shall be reported to the standardization administrative departments of the State Council for filing.

Article 12 The State includes scientific and technological research in the development and utilization of, and the industrialized development of, renewable energy, as the priority for technological development and hi-tech industrial development and in the State technological development plan and hi-tech industrial development plan, and allocates funding to support the scientific and technological research, application demonstration and industrialized development of the development and utilization of renewable energy so as to promote technological advancement in the development and utilization of renewable energy, reduce the production cost of renewable energy products and improve the quality of products.

Education administrative department of the State Council shall incorporate the knowledge and technology on renewable energy into general and occupational education curricula.

Chapter IV

Promotion and application

Article 13 The State encourages and supports grid-connected power generation with renewable energy.

For the construction of grid-connected projects of power generation with renewable energy, administrative permits shall be obtained or filing shall be made in accordance with the laws and the provisions of the State Council.

For grid-connected projects of power generation with renewable energy that requires the acquisition of administrative permit, if there is more than one applicant for the same project permit, the a person to be granted the permission shall be determined through a tender in accordance with the law.

Article 14 The State implements a system guarantying full purchase of power generated by renewable energy.

The competent energy department of the State Council together with the national power regulatory authority and the finance department of the State Council shall, based on the national renewable energy development and utilization plan, determine the ratio of the power that can be generated by renewable energy during the planning period to the total power generated and formulate the specific measures for the power grid enterprises in prioritized dispatch and full purchase of power generated by renewable energy, which shall be implemented on an annual basis under the supervision of the competent energy department of the State Council and the national power regulatory authority.

Power grid enterprises shall enter into grid connection agreement with renewable power generation enterprises that are established based on the renewable energy development and utilization plan and have obtained administrative permit or for which filing has been made according to the law, and purchase all the on-grid power produced by the grid-connected projects of power generation with renewable energy which is within the coverage of their power grid and meets the grid-connection technological standard. The power generation enterprise has the obligation to cooperate with the power grid enterprises to ensure the safety of the grids.

Power grid enterprises shall strengthen grid construction, expand the distribution area of power generated by renewable energy, develop and apply such technologies as smart grids and energy saving technologies, improve the management of grid operation, increase the ability to absorb power generated by renewable energy and provide grid-connection service for the generation of power with renewable energy.

Article 15 The State supports the construction of independent renewable power systems in areas not covered by the power grids to provide power service for local production and living.

Article 16 The State encourages clean and efficient development and utilization of biological fuel and encourages the development of energy crops.

If the gas and heat produced with biological resources conform to the network connection technological standard of urban gas pipeline networks and heat pipeline networks, enterprises operating gas pipeline networks and heat pipeline networks shall accept them into the networks.

The State encourages the production and utilization of biological liquid fuel. Enterprises engaging in the sales of oil shall, in accordance with the provisions of the competent energy department of the State Council or people's governments at the provincial level, include biological liquid fuel conforming to the national standard into its fuel-selling system.

Article 17 The State encourages entities and individuals to install and use solar energy utilization systems such as solar energy water-heating system, solar energy heating and cooling system and solar photovoltaic system.

The competent construction departments of the State Council shall work with the relevant departments of the State Council in establishing technical economic policies and technical standards with regard to the combination of solar energy utilization system and construction.

Real estate development enterprises shall, based on the technical standards in the previous paragraph, provide necessary conditions for the utilization of solar energy in the design and construction of buildings.

For buildings already built, residents may, on the condition that its quality and safety is not affected, install solar energy utilization system that conforms to technical standards and product standards, unless an agreement has been otherwise reached between relevant parties.

Article 18 The State encourages and supports the development and utilization of renewable energy in rural areas.

The energy administrative departments of local people's governments above the county level shall, based on the actual situations such as the local economic and social development, ecological protection and health and treatment need, work with the relevant departments to prepare renewable energy development plan for the rural area and promote the application of technologies such as the conversion of biomass energy like the marsh gas, household solar energy, small-scale wind energy and small-scale hydraulic energy which are tailored for the localities.

People's governments above the county level shall provide financial support for the renewable energy utilization projects in the rural areas.

Chapter V

Price Management and Fee Compensation

Article 19 The price of grid-connected power generated by renewable energy power projects shall be determined by the competent pricing department of the State Council based on the features of power generated by different types of renewable energy and the situations of different regions, under the principle of being conducive to promoting the development and utilization of renewable energy and being economic and reasonable, and timely adjustment shall be made based on the development of technology for the development and utilization of renewable energy. On-grid price shall be announced.

For the on-grid price of projects of power generation with renewable energy subject to tender as stipulated in the third paragraph of Article 13 of this Law, the bid-winning price shall be implemented. However, such a price shall not exceed the level of on-grid price of similar projects of power generation with renewable energy determined in accordance with the provisions of the preceding paragraph.

Article 20 The excess of the expenses incurred by a power grid enterprise purchasing power generated by renewable energy at the on-grid price determined in accordance with the provisions of Article 19 of this Law over the expenses incurred on the basis of average on-grid price of power generated by conventional energy shall be compensated by the surcharge of the renewable energy price charged on the sales of power throughout the country.

Article 21 Reasonable grid connection expenses paid by power grid enterprises for the purchase of renewable power and other reasonable expenses may be included into the power grid enterprise's power transmission cost and recovered from the selling price of power.

Article 22 For the selling price of power generated from independent public renewable power system invested or subsidized by the State, classified selling price of the same area shall be adopted, and the excess of its reasonable operation and management expenses over the selling price of power shall be compensated in accordance with the provisions of Article 20 of this Law.

Article 23 The price of renewable heat and gas that enters the urban pipeline network shall be determined on the basis of price administrative departments under the principle of being conducive to promoting the development and utilization of renewable energy and being economic and reasonable.

Chapter VI

Economic Incentives and Supervisory Measures

Article 24 A renewable energy development fund is established with the State budget. The source of funding includes specialized funds arranged by the State for the financial year and the surcharge of renewable power price charged in accordance with the law.

The renewable energy development fund is used to compensate the difference in the expenses as stipulated in Article 20 and Article 22 of this Law and is used to support the following:

(1) Scientific and technological research, standard establishment and pilot project for the development and utilization of renewable energy;

(2) Renewable energy utilization projects in rural and pasturing areas;

(3) Construction of independent renewable power systems in remote areas and islands;

(4) Surveys and assessments of renewable energy resources and the construction of relevant information systems; and

(5) promotion of localized production of equipment for the development and utilization of renewable energy.

A power grid enterprise that cannot recover the grid connection expenses and other relevant expenses prescribed in Article 21 of this Law through the selling price of power may apply for subsidy from the renewable energy development fund.

The specific measures for the collection, utilization and management of the renewable energy development fund shall be formulated by the finance department of the State Council in conjunction with the competent energy and price departments of the State Council.

Article 25 Financial institutions may offer preferential loan with financial interest subsidy to renewable energy development and utilization projects that are listed in the national renewable energy industrial development guidance catalogue and meet the conditions for granting loans.

Article 26 The State grants tax benefits to projects listed in the renewable energy industrial development guidance catalogue, and specific measures are formulated by the State Council.

Article 27 Power enterprises shall authentically and completely record and store relevant information of power generation with renewable energy, and shall accept the inspection and supervision of power regulatory authorities.

Power regulatory authorities shall conduct inspection in accordance with the stipulated procedures, and shall keep trade secrets and other secrets for inspected entities.

[stop]

Chapter VII

Legal liabilities

Article 28 The competent energy department of the State Council and the energy administrative departments and other relevant departments of the local people's governments above the county level that breach the provisions of this Law and are engaged in any of the following acts when supervising and administering the development and utilization of renewable energy will be ordered by the relevant departments of the people's governments of or above their own level to make rectification and the relevant responsible persons in charge and other directly responsible persons will be imposed an administrative penalty in accordance with the law. If the violation constitutes a criminal offense, the violating party shall be subject to criminal liability in accordance with the law:

(1) Failure to make administrative licensing decision in accordance with the law;

(2) Failure to conduct an investigation and impose penalty when illegal activities are discovered; and

(3) Other acts of not legally performing supervision and administration duties.

Article 29 If a power grid enterprise breaches the provisions of Article 14 of this Law and fails to complete the purchase of renewable power in accordance with the provisions, which results in economic loss to the renewable power generation enterprise, such power grid enterprise shall be liable for compensation and be ordered by the national power regulatory authority to make rectification within a time limit. In case of refusal to make rectification, a fine of not more than one time the economic loss of the renewable power generation enterprise shall be imposed.

Article 30 In the event that an enterprise operating gas pipeline network or heat pipeline network breaches the provisions of paragraph 2 of Article 16 of this Law and does not permit the connection of gas and heat that conform to the grid connection technical standard into the network, which results in economic loss to the gas and heat production enterprise, the relevant enterprise shall be liable for compensation and be ordered by the energy administrative department of the people's government at the provincial level to make rectification within the stipulated period. In case of refusal to make rectification, a fine of not more than one time the said economic loss of the gas and heat production enterprise shall be imposed.

Article 31 If an enterprise engaging in the sales of oil breaches the provisions of paragraph 3 of Article 16 of this Law and fails to include biological liquid fuel that conforms to the national standard into its fuel-selling system, which results in economic loss to the biological liquid fuel production enterprise, the relevant enterprise shall be liable for compensation and be ordered by the competent energy department of the State Council or the energy administrative department of the people's government at the provincial level to make rectification within the stipulated period. In case of refusal to make rectification, a fine of not more than one time the said economic loss of the biological liquid fuel production enterprise shall be imposed.

Chapter VIII

Supplementary Provisions

Article 32 Terms used herein shall have the following meanings:

(1) Biomass energy: means energy converted from natural plants, dejecta as well as urban and rural organic waste.

(2) Independent renewable power system: means renewable power system that operates separately and is not connected to the power grid.

(3) Energy crop: means herbage and wood plants specially planted and used as raw materials of energy.

(4) Biological liquid fuels: means liquid fuels derived from biomass resources, such as methanol, ethanol and bio-diesel.

Article 33 This Law shall come into force as of January 1, 2006.