Draft law would require grid to buy all renewable energy

Beijing is considering a law requiring China’s grid companies to buy all power produced by renewable energy, state media reported. A draft of the law debated the Standing Committee of the National People’s Congress would penalize grid companies for not buying electricity from renewable sources, fining them up to double the economic loss of the renewable energy producer. The law also gives supervisory power to the State Council’s energy department and the state power regulatory agency to "determine the proportion of renewable energy power generation to the overall generating capacity for a certain period." The draft law has greater potential to encourage further development of renewable energy sources than a minimum purchase quota for renewable energy, under which grid companies have little incentive to exceed the quota.