“the countries that have the largest penetration of renewables have the highest electricity costs.”
really?
Who has the greatest build of renewable power on earth? China. More than all the rest of the world combined.
What’s the cost of electricity in China? Cheap
“China has relatively low electricity costs compared to many other countries, which has helped it emerge as a leader in energy-intensive industries and green technologies like electric vehicles (EVs) and renewable energy. Here are some key points about electricity costs in China:
- In December 2021, the average electricity cost for businesses in China was around £0.078 (0.67 yuan) per kWh, nearly three times lower than the UK's £0.216 per kWh.[1]
- Electricity prices vary across different cities in China. For example, in March 2024, the industrial electricity price for 35kV and above was 0.65 yuan/kWh in Fuzhou, 0.61 yuan/kWh in Shenzhen, 0.56 yuan/kWh in Xining, and 0.87 yuan/kWh in Shanghai.[2]
- In 2022, the average electricity price in China was around 90.7 USD/MWh (0.64 yuan/kWh), fluctuating between 83.24 USD/MWh (0.59 yuan/kWh) in 2020 and 93.8 USD/MWh (0.66 yuan/kWh) in 2021.[3]
- Residential electricity prices are higher than industrial/commercial rates. In 2023, residential rates were around 0.9 yuan/kWh, compared to 0.4 yuan/kWh for industrial and commercial users.[5]
- China has implemented policies like feed-in tariffs and renewable energy auctions to promote renewable energy, which has helped keep electricity costs relatively low.[3]
In summary, China's electricity costs for businesses and industries are relatively low, ranging from around 0.56 to 0.87 yuan/kWh across different cities, which has supported its growth in energy-intensive and green technology sectors.[1][2][3][5]
Sources
[1] Electricity Costs and China's Race for Net Zero - CBBC Focus
https://focus.cbbc.org/electricity-costs-and-chinas-race-for-net-zero/
[2] Electricity Price: 36 City - China - CEIC
https://www.ceicdata.com/en/china/electricity-price-36-city
[3] Mainland China - Climatescope 2023
https://www.global-climatescope.org/markets/cn/
[4] Electricity price index - China - businessanalytiq
https://businessanalytiq.com/procurementanalytics/index/electricity-price-index-china/
[5] China changes pricing model for world's largest power grid
https://asia.nikkei.com/Spotlight/Caixin/China-changes-pricing-model-for-world-s-largest-power-grid
