China, being coal-dependant, majority of its electricity gathers from coal-fired baseload plants which pollute the environment. Recently, the standing committee of the National People’s Congress
revised the 2006 renewable energy law which demanded that the power grid operators needed to buy all the electricity power which was only generated by renewable energy generators. This step was taken so as to utilize this technology via renewable energy sources, thereby reducing the power usage from coal-fired baseload plants.
This source of energy will begin in a phased manner as this revision of 2006 energy law has given authority to State Council energy department along with State Council finance department and state power authority to judge the overall power generating capacity as compared to the quantity of renewable energy power it generates.
This interest has also been seen in many other countries to phase out the existing methods of coal-fired baseload plants and implement the renewable energy power systems even if it means a heavy investment.
A significant expansion of wind power system is seen in China during  recent times, aided by the government subsidies although there is enough wind generation they are not always connected to the grid or the locations of the wind farms for optimum wind utilization is not taken care of. In fact, industry experts say that almost one-third of the installed wind capacity are not connected to the grid. Most of the wind power generators are not installed in good locations, usually being wind-swept and far away from civilized areas like Inner Mongolia and Gansu where the requirement for power is not that high. Another reason what prices the wind farms out of its energy power market is that the countries least expensive coal generators are also located in Inner Mongolia.

Due to this new law being enforced, it would benefit China’s excellent nuclear power plants even though nuclear power is inexpensive.
The new law revision also ordered a fine up to double the loss suffered by the renewable energy generators, if the grid operators refused to purchase power created by renewable generators.

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