STATE OF THE MARKET 2018 : CORPORATE RENEWABLE PROCUREMENT IN CHINA

The report 'State of the Market 2018: Corporate Renewable Procurement in China' analyzes the transition of China's renewable energy market from a feed-in-tariff (FiT) system to a Renewable Portfolio Standard (RPS). It examines the available mechanisms for corporations to procure green electricity, noting that while on-site solar and direct investments are currently viable, large-scale transaction mechanisms remain limited and dependent on evolving provincial and national policies.

• China is transitioning its renewable energy (RE) support system from a feed-in-tariff (FiT) to a Renewable Portfolio Standard (RPS). The government aims for RE to reach grid parity, leading to policies that reduce FiT levels and limit new projects to encourage cost reductions and more efficient technology.
• A national Renewable Energy Certificate (REC) market is being established to track RPS compliance and create mandatory RE purchase requirements across all provinces by the end of 2018.
• Corporate procurement of renewable energy in China is driven by a desire to be market leaders and a focus on sustainable supply chains, which aligns with the Chinese government's own agenda.
• Currently available procurement options for corporations include Green Electricity Certificates (GECs), on-site solar, and direct investment in utility-scale renewables. GECs are the easiest to access but are often unattractive due to high prices, while on-site solar growth was capped by 2018 policy changes.
• Large-scale transaction mechanisms are not widely available. While the first interprovincial direct power purchase transaction occurred in January 2018 between a metalware company in Shandong and a wind developer in Shanxi, significant barriers such as transmission availability and provincial misaligned incentives remain.
• Intraprovincial renewable energy deals are primarily limited to provinces with high curtailment or rich hydro resources, as generators in high-load provinces like Guangdong and Jiangsu lack the motivation to transact directly with non-utility users.

APA

Hansen, L., Porter, M., Song, J., Qiao, T., & Zhu, C. (2018). STATE OF THE MARKET 2018 : CORPORATE RENEWABLE PROCUREMENT IN CHINA. RMI. https://rmi.org/app/uploads/2018/12/rmi-brc-china-state-of-the-market-2018.pdf

Chicago

Hansen, Lena, Mark Porter, Jiayin Song, Tian Qiao, and Caroline Zhu. STATE OF THE MARKET 2018 : CORPORATE RENEWABLE PROCUREMENT IN CHINA. RMI, 2018. https://rmi.org/app/uploads/2018/12/rmi-brc-china-state-of-the-market-2018.pdf.

Wikipedia

{{cite report |last1=Hansen |first1=Lena |last2=Porter |first2=Mark |last3=Song |first3=Jiayin |last4=Qiao |first4=Tian |last5=Zhu |first5=Caroline |title=STATE OF THE MARKET 2018 : CORPORATE RENEWABLE PROCUREMENT IN CHINA |publisher=RMI |date=October 2018 |url=https://rmi.org/app/uploads/2018/12/rmi-brc-china-state-of-the-market-2018.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hansen2018state, author = {Hansen, Lena and Porter, Mark and Song, Jiayin and Qiao, Tian and Zhu, Caroline}, title = {{STATE OF THE MARKET 2018 : CORPORATE RENEWABLE PROCUREMENT IN CHINA}}, institution = {RMI}, year = {2018}, month = oct, url = {https://rmi.org/app/uploads/2018/12/rmi-brc-china-state-of-the-market-2018.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }