China's Shanxi province provides subsidies to elicit investing interest in biomass and pumped-storage power projects as part of a drive for the green transition of the coal-rich province.
For pumped-storage stations, the government will grant the investor a reward of 2 million yuan (about $0.3 million) once the project is ready to break the ground with all pre-construction works completed, according to a document issued by the government of Taiyuan, the province's capital city.
Upon completion, the government will subsidize the project by 0.1% of the total investment, with the amount up to 10 million yuan, the document said.
For small-sized hydropower generation projects, the government will give a dispensable reward of 1 million yuan.
Biomass projects will receive the subsidy of 2% of the investment up to 5 million yuan once completion. Geothermal energy projects can be subsidized by 20% of the investment up to 5 million yuan after operation.
Shanxi's power generation hit 373.44 TWh last year, up 8.9% from a year earlier, China's national statistics showed. This accounted for 4.6% of China's total power generation. Coal-based power generation was 320.6 TWh, making up 86% of the province's total output.
Around 250 million tonnes of carbon dioxide was generated from Shanxi's coal-fired power generation last year.
(Writing by Alex Guo Editing by Tammy Yang)
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