China relaxed limitations on renewable power utilization in energy-rich areas, addressing concerns that grid congestion could slow the pace of renewable installations, reports Bloomberg. The move is one of several government policies released on Wednesday designed to promote clean energy. Others include speeding up battery storage installations and accelerating the build-out of power lines. Beijing has also called for a more rigorous approval process for some clean energy manufacturing amid excess capacity that’s slashed corporate profits.
The new policies serve China’s existing goals of cutting nationwide energy consumption and carbon dioxide emissions per unit of GDP by 2.5% and 3.9% respectively in 2024. The government’s top economic planning agency acknowledged at a briefing on Thursday that it’s fallen behind its targets and will likely miss the 13.5% reduction in energy intensity by 2025 that was laid out in the current five-year plan.
Shares of Chinese clean energy companies broadly rose on the policies included in the State Council’s action plan. Polysilicon maker GCL Technology Holdings rose as much as 10% in Hong Kong, while wind farm operator China Longyuan Power Group gained as much as 6.1%.