China is considering imposing fines equivalent to five to 10 times the cost of green electricity certificates needed to cover 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 Standing Committee of the National People's Congress, the country's top legislature, for a first reading on Monday.
The draft aims to establish a regulatory framework covering target setting, provincial implementation, performance assessment and penalties, in a bid to boost renewable energy consumption and strengthen accountability.
Under the proposed revision, the national energy authority, in coordination with other relevant departments under the State Council, would set a minimum share of renewable energy in total energy consumption and oversee and assess compliance.
The national energy authority would also establish 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 draw up implementation plans for meeting their respective quotas. The plans would take effect after being approved by provincial-level governments and made public.
The draft also strengthens accountability for local governments. Provinces, autonomous regions and municipalities that fail to meet their quotas within the prescribed time frame would be required to take immediate corrective measures. Higher-level governments could also summon their principal officials for accountability talks.
Entities that fail to meet the minimum renewable electricity consumption targets could face fines equivalent to five to 10 times the cost of the green electricity certificates required to make up the shortfall, according to the draft. The cost would be calculated based on the average market transaction price of green electricity certificates in the month preceding the compliance deadline.
Violations would also be recorded in the entities' credit records, exposing them to heightened regulatory scrutiny.
The targets could be met through the self-generation and consumption of renewable electricity, direct connections to green power sources, green electricity trading, and the trading or transfer of green electricity certificates.
Green electricity certificates are the country's principal mechanism for verifying the production and consumption of renewable electricity. Each certificate represents 1,000 kilowatt-hours of renewable electricity.
According to the National Energy Administration, 68.37 million green electricity certificates were traded separately nationwide in January 2026.
Of these, about 6.5 million certificates for electricity generated in 2024 were traded at an average price of 1.25 yuan ($0.18) each, while 61.88 million certificates for electricity generated in 2025 changed hands at an average price of 5.51 yuan each.
Reporting to the NPC Standing Committee session, E Jingping, vice-chairman of the NPC Environmental Protection and Resources Conservation Committee, said developing renewable energy is essential to optimizing China's energy mix, safeguarding energy security and advancing ecological civilization.
China has established the world's largest and fastest-growing renewable energy system, as well as the most comprehensive new energy industrial chain, E said. However, after more than two decades of rapid development, profound changes in the sector have made revisions to the existing law necessary.
During the 15th Five-Year Plan period (2026-30) and beyond, most growth in energy demand is expected to be met by nonfossil energy, with renewable energy gradually becoming the mainstay of the country's new energy system, he said.
China aims to raise the share of nonfossil fuels in total energy consumption to more than 30 percent by 2035 and expand its combined installed wind and solar power capacity to more than six times the 2020 level, reaching 3.6 billion kW.
Achieving these goals would require annual additions to wind and solar power capacity to average 200 million kW over the next decade, E said.
The expansion will place greater demands on renewable electricity consumption, grid stability, and land and environmental resources, he added.
"Revising the law will help generate new momentum for renewable energy development and provide stronger legal support for achieving China's carbon goals," he said.
