Three departments including the National Development and Reform Commission ("NDRC") have recently issued the Implementing Proposals for Improving the Construction and Operation of Biomass Power Generation Projects (the "Proposals").
The Proposals contain contents in five aspects: 1. general requirements; 2. conditions for project subsidy; 3. working procedures; 4. rules for being incorporated into the scope of projects subject to subsidy of the current year; and 5. promoting the orderly construction of biomass power generation. Among others, the Proposals call for efforts to implement the supporting policies for biomass power generation, encourage financial institutions to provide medium and long-term credit support for biomass power generation projects, establish a charge system for domestic waste disposal, encourage local governments to make overall arrangements for various types of funds, and provide support and compensation for collection, storage, transportation, disposal, and other aspects related to biomass power generation. In addition, the Proposals also give stipulations on the establishment of a credit commitment system for the application of subsidies for biomass power generation projects and on promoting the improvement of the subsidy mechanism for biomass power generation projects. For example, starting from January 1, 2021, subsidies for planned biomass power generation projects that have been approved but not yet commenced construction and those newly approved will all be allocated through competition.