China’s New Law

A new Chinese law requires power grid operators to buy all the electricity produced by renewable energy generators, in a move that will increase the proportion of energy that comes from renewable sources in coal-dependent China.  Rest at Reuters.

Forcing power companies to buy renewable energy will increase energy prices in the short-run but it will also shorten the “hump” in the price curve as increased use of renewables will continue the inexorable process of driving down the cost of producing such renewable energy.

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