China: The Parity GECs Market has Initiated, and the Transaction Volume is Expected to Surge
Along with the termination of FiT subsidies for onshore wind power and some of the PV power projects in China, the country has entered the “grid parity” era. The national Green Electricity Certificates (GECs) introduced in 2017 became an alternative to subsidies.
To initiate the market for parity GECs, the State Power Investment Corporation traded 60 GECs at the end of June. Following the first transaction, at the beginning of July, one of Apple’s suppliers had bought 100,000 parity GECs, which was the largest parity green certificate transaction in the world so far, with a single transaction volume exceeded the cumulative volume of parity green certificates for both I-REC and GEC.
To date, more than 300 companies worldwide have committed to the RE100 initiative, indicating a huge need for renewable energy. As a result, it is predicted that GECs trading will see rapid growth in the future and become the new necessity in the Chinese market.