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BEIJING, Dec. 24 -- China will reduce benchmark on-grid price of onshore wind power and photovoltaic (PV) power generated electricity to promote a sound environment for the green energy industry, the country's top economic planner said Thursday.

The benchmark price of onshore wind power in the first, second and third grade resource areas will be reduced by 0.02 yuan (less than one cent) in 2016 and 0.03 yuan in 2018, the National Development and Reform Commission (NDRC) said in an online statement.

The price in a fourth grade resource areas will be cut by 0.01 yuan and 0.02 yuan in 2016 and 2018, respectively, said the NDRC.

Resource area grades identify the amount of a certain resource produced in a region and help determine the price for such products. A first grade resource area would produce the most and hence generally have cheaper prices. Wind power grades range from first to fourth, while PV power ranges from first to third.

The benchmark price of PV power in the first grade resource area will be reduced by 0.1 yuan in 2016. The second and third grade resource areas will be reduced by 0.07 yuan and 0.02 yuan respectively.

The move is aimed to promote effective new energy investment and a sustainable and sound development of renewable energy industry, according to the NDRC.

The State Council released an action plan on energy development for 2014-2020 in November, promising more efficient, self-sufficient, green and innovative energy production and consumption.

By the end of 2020, China aims to increase non-fossil energy to 15 percent of total primary energy consumption and raise the share of renewable energy in production.