China is considering imposing fines of five to 10 times the green electricity certificate cost of any shortfall on entities that fail to meet mandatory renewable electricity consumption targets, according to a draft revision to the Renewable Energy Law submitted to the country's top legislature for a first reading on Monday.
The draft would establish a regulatory framework covering target setting, provincial implementation, performance assessment and penalties, in an effort to promote renewable energy consumption and improve accountability.
Under the proposed legislation, the national energy authority, together with other relevant departments under the State Council, would set a minimum share of renewable energy in energy consumption and monitor and assess compliance.
Minimum renewable electricity consumption targets could be met through the self-generation and self-consumption of renewable power, direct green electricity connections, green electricity trading, and the trading or transfer of green electricity certificates.
The national energy authority would also determine renewable electricity consumption responsibility quotas based on the country's renewable energy development plan and annual targets.
Relevant provincial government departments would be required to formulate implementation plans for meeting their respective quotas. The plans would take effect after receiving approval from provincial-level governments and being made public.
The draft also strengthens accountability for local authorities. Provinces, autonomous regions and municipalities that fail to meet their quotas by the required deadline would have to take immediate corrective action. Higher-level governments could summon their principal officials for accountability talks.
Entities that fail to meet the minimum renewable electricity consumption target could face fines equivalent to five to 10 times the cost of the green electricity certificates needed to cover their shortfall, according to the draft.
The cost would be calculated using the average market transaction price of green electricity certificates in the month preceding the compliance deadline, it said. Violations would also be entered into the entities' credit records, subjecting them to heightened regulatory scrutiny.
China has developed a life cycle management system covering the issuance, trading, use and cancellation of green electricity certificates. The certificates serve as the country's principal instrument for verifying the production and consumption of renewable electricity.
According to the National Energy Administration, 68.37 million certificates were traded separately nationwide in January 2026. About 6.5 million certificates for electricity generated in 2024 changed hands at an average price of 1.25 yuan ($0.19) each, while 61.88 million certificates for power generated in 2025 traded at an average of 5.51 yuan each.
One green electricity certificate unit corresponds to 1,000 kilowatt-hours of renewable electricity.
The draft revision, comprising 76 articles in 10 chapters, also seeks to improve renewable energy planning, project development, electricity transmission, market trading, pricing, technological innovation and industry oversight.
