The introduction of subsidy policy for new energy vehicles is an attempt fo promote the development of electric vehicles (EVs) using policy instrument.

Large-scale depolyment of EVs will help to improve China's energy supply security, and promote energy conservation and emission reduction.

Large-scale development of EVs will help to promote clean energy development, and improve energy efficiency. China has rich wind energy resources, but wind power often has the characteristic of anti-peak regulation, and its large-scale development will increase the difficulty of peak regulation. EVs charging at off-peak times can reduce the difference between, the peak and valley and make more wind power intergrated, and promote large-scale development of wind power. Meanwhile, the development of EVs can improve load characteristics, increase the load rate of thermal power, reduce coal consumption and improve efficiency of fossil fuels.

Large-scale development of EVs will help to fundamentally improve the quality of the environment, optimize China's energy consumption structure, reduce pollutants and greenhouse gas emissions, and promote green development.

The development of EVs in China is still at the initial stage. This subsidy policy will help enterprises to increase R & D and technical reserves, and accelerate the development of key technologies of EVs.(compiled from State Grid News)