China wants to invest more in energy upgrades

China's State Planner has called for increased investment in equipment upgrades, to support the energy transformation. He said the market should be a leader.

The National Development and Reform Commission issued a notice on Wednesday calling for an increase of 25% in investment to upgrade China's equipment to improve energy efficiency from 2023-2027.

According to the notice, these investments will help support a Chinese cabinet-led program for equipment upgrades and trade-ins of consumer goods launched in March. The program aims to increase investment and consumption in the face of a fragile economic recovery.

Beijing's energy upgrade plan includes investment in energy conservation, flexibility of coal power plants, renewable energy and power grid technology. These are all areas that Beijing has indicated will be crucial to the transition from coal to low-carbon energy.

The report also urges financial institutions to provide more loans for medium and long term to manufacturing industries and to upgrade their equipment.

The plan reiterates existing regulations regarding equipment upgrades. For example, wind farms older 15 years or less than 1.5 Megawatts (MW), should be retrofitted.

At a cabinet meeting held in late July, China announced that it would increase its support for equipment upgrades focusing on energy, electricity, and battery sectors. (Reporting and editing by Andrew Heavens, Jan Harvey and Colleen Waye)

(source: Reuters)