Recently, Chairman Liu received official reply from the National Energy Administration about his Two Sessions proposal on ’Vigorously Promoting PV Generation against Nationwide PM 2.5 Pollution’.

Chairman Liu stated, only by accelerating the transition of new energy production and utilization means, thoroughly altering the energy structure dominated by fossil fuel such as coal and oil, promoting new energy of solar and wind power, can the influence of PM 2.5 be effectively relieved and eliminated from the source, and the issue of China’s pollution and carbon emission be radically solved.

According to Mr. Liu, for all the effect of temporary shut-down of polluting companies by the State, the expedient measure cannot fundamentally change China’s eco-environment. New energy and renewable energy can not only solve and provide for the insufficient supply of China’s fossil fuel, but also improve China’s energy structure, guarantee energy safety, and can protect environment for sustainable development.

Specifically, Mr. Liu suggested the functional departments shall elaborate the On-grid Power Tariff Act, and release the approval and examination for grid connection of scaled PV plants, which will significantly promote PV power generation and energy production means transition. Meanwhile, PV power generation subsidy mode shall be further optimized, which enables the State to use limited financial fund for subsidy. Additionally, detailed rules and regulations for distributed PV power generation shall be unveiled as soon as possible. The German experience shall be drawn for reference that the self-use part of electricity could be covered in subsidy, and the standards can be executed according to on-grid power tariff.

Based on Mr. Liu’s proposal, the NEA made extensive research and discussion, and reported it to the NDRC. Combining opinions from the Finance Ministry, Opinions on Promoting the Healthy Development of PV Industry was issued by the State Department in July, 2013.