Renewable Energy Development in China

China’s Green Revolution
“China was asleep during the Industrial Revolution. She was just waking during the Information Technology Revolution. She intends to participate fully in the Green Revolution.” This summary by the first chief executive of Hong Kong after its handover in 1997 aptly portrays the proactive attitude of the Chinese Government towards Renewable Energy Technology — a green revolution that is both a necessity and an opportunity not to be missed.

According to Netherlands Environmental Assessment Agency (NEAA), by 2006, China had overtaken the US to become the world’s largest carbon dioxide emitter. China and the US together accounts for more than 42% of the world’s anthropogenic greenhouse gases. Statistics from the China National Development and Reform Committee show that in 2005, 69% of the country's primary energy consumption come from coal. China is the world's largest consumer of coal.

China’s dramatic industrialization has led to substantial growth in energy demand. Total electricity consumption grew by more than five times from 1990 to 2007, while growing petrol consumption has made China the world’s second largest oil consumer after the U.S.

This rapid economic growth coupled with increasing environmental toll, energy security concern, better alternatives from renewables, poverty alleviation, investment opportunities from Clean development Mechanism ( CDM ) of Kyoto Protocol, create an urgent need to increase its energy generation but with reduced coal dependence, and to diversify into a cleaner and more efficient option. The key option is 'renewable'. Promotion of energy efficiency and renewable energy is fuelling sustainable economic growth in China.

Renewable Energies

China has exhibited its willingness to work in multilateral settings to mitigate climate change. It has adopted the most aggressive energy efficiency program in the world, according to report from Climate Works, which visits countries around the world, sharing clean energy ideas. The speed with which China is now ramping up its commitment to alternative energies has caught even the most optimistic analysts by surprise. China has already implemented fuel efficiency standards for automobiles and efficiency targets for its top thousands industries. Its energy ministry is actively working on solar, nuclear and wind power.

China has set its own target to reduce energy consumption per unit of GDP by 20% of 2005 in 2010. Accordingly that would mean reducing energy dependence on coal from 80% to 60% by 2020, diversifying energy output from oil, with increased output from gas, nuclear and renewable options.


(Source: Ndrc.gov.cn) (Unit: GW)		(Unit: kW)

Diversification from oil strategy constitutes the main part of the China’s 2006-2010 Five-Year Plan. China plans for a 100% increasing in renewable energy generation to cater for 16% of the country’s energy need by 2020, up from 7% in 2005. Officials have indicated that this the target will rise. As a comparison, the the US, President Barack Obama has called for 25% of electricity from renewable sources by 2025, from about 2.5% now.

China's foresight in recognizing the great potential of green technology as a major solution to climate change enables it to be one of the pioneers and achievers in global renewable energy industries. Nuclear, solar, wind, hydroelectricity and biofuel are being lined up for massive new investment through China's £400bn stimulus package.

While many in the world were all eyes and ears on Iraq and Afghanistan, China was busily engaged in growth and development locally and internationally. It has the massive but committed and efficient manpower behind it to help build renewable energy projects in record time.

It has the world's biggest installed renewable capacity of 152 GW as at 2008. Total power capacity from renewables could reach 400 GW by 2020, with hydro, wind, biomass, and solar PV power making the major contributions. One GW, or 1 billion watts, is enough electricity to power a million homes.

China has the most aggressive renewable energy deployment in the world, for wind, solar and nuclear. It has set a renewable energy target of 10% of electric power capacity by 2010, 5% of primary energy by 2010 and 10% by 2020. This growth target for renewable energy production will require an investment of US $100 billion by 2020. Most targets are attained within stipulated time frames.

China has the most number of hydroelectric generators in the world. Dams account for 16% of total electricity generation in 2005, mainly from Da-Chao-Shan, Gong-Bo-Xia and the Three Gorges Dam. (Pic: the Three Gorges Dam)
Total installations of hydropower reached 145 GW through 2007. China has set the target of 190 GW for 2010; 300 GW by year 2020.

China leads the world in total renewable energy consumption for electricity production due to its recent massive additions to hydroelectric production, followed closely by the United States, Canada, and Brazil.
Small hydro schemes, installed along with a project for flood control, irrigation or other purposes, providing extra revenue for project costs, are particularly popular in China. China has over 50% of world small hydro capacity.

Wind power is the fastest-growing power generation technology in China, thanks to the introduction of the Renewable Energy Law in 2006 offering state subsidies for wind power. Wind power generation have doubled in capacity each year for the past four years, on course to overtaking hydroelectricity as the country’s second-largest electricity source. China has started a 500 MW wind power project by October 2008, and another 1000 MW is planned as a follow up to it, which on completion would be among one of the world's largest wind farms.

China has the largest wind resources in the world, mostly offshore. Installed capacity was just 1.3GW in 2005, projected to achieve a world-leading 100GW by 2020, 5 times its current 2009 level; and greater than Britain's entire electricity use.

According to New China press agency, in 2009, China had generated 20GW of capacity, making it the third leading wind power provider in the world, overtaking Spain and trailing closely after the US and Germany – and is now planning to increase its energy capacity from 9 per cent last year to 15 per cent by 2020. According to the Chinese Electrotechnical Society, there are currently six major wind farms under construction, each with a peak generation exceeding 10 GW. China's 10,000 megawatt wind farms will thus become the largest in the world on completion

A Global World Energy Council study stated that if the country continues to build more renewable projects, wind farms may be able to produce 50 per cent of China’s power requirement by 2030.

According to the Global Wind Energy Council, in 2008, China provides over 30,000 MW of wind energy. In 2007, wind power investment amounts to US $5 billion, capable of drawing up to $150 billion, with an annual growth rate of 24%.
The winds of change in wind power is happening so rapidly that in the wind-farms outside Urumqi, the first 13 windmills erected in 1989, are now used primarily as a tourist attraction.
(Pic: A sheep herder in a wind farm in Urumqi, Xinjiang Province. AFP/File/Frederic J. Brown)

China tops the world in solar power generation

China has a total of 52 million square meters of solar energy heating panels representing 40% of the global total. By year 2020 solar heating is estimated to reach 300 million cubic meters.

China is top producer of solar heater. Solar heaters provide hot water everywhere in China; from Beijing airport to a village inn in remote Yunnan as it is as cheap as other alternatives.
(Left: Solar Heater on Rooftop of Dezhou, China where the sun always shines. Here solar energy powers everything including heaters, street lights Greenpeace )

China is the top manufacturer of solar photovoltaics by 2008, with capacity of 1.7GW as compared to global 3.8GW in 2007 (Chinese Renewable Energy Industries Association-CREIA).
Though China supplies half the world's solar panels (right), solar power as in grid-tied photovoltaic is still in its infancy due to affordability. But in July 2009, China announced its plans to subsidize 50% of investment costs and offer incentives on relevant solar power transmission and distribution connected to grid to boost a broader utilization of solar energy, with a goal of 2 GW by 2011 and 10 to 20 GW by 2020. This comes at a time when European countries including Spain and Germany, two of the largest solar markets, are pulling back on spending to slow industry growth.

In January 2010, ESolar Inc. of Pasadena signed an agreement to build a series of solar thermal power plants in China with a total capacity of 2 gigawatts, viewed as one of the largest renewable energy deals of its kind. This came four months after an Arizona company, First Solar, secured a contract to build an almost equally large photovoltaic power plant in Inner Mongolia. The 2 gigawatts of solar power generated by the plants will eliminate 15 million tons of carbon dioxide emissions every year.

In Beijing the government has installed solar panels to power street lights and, along the rooftops of the city's remaining courtyard houses can be seen the winding pipes of solar water heaters. Solar-powered landscape lights and wind-powered street lamps also make up part of the scenery in the Olympic sailing center. It is not only environmentally friendly but adds to the beauty of Qingdao's coastline by night.

China is top manufacturer of fermenters

Biomass power in China comes mostly from sugarcane wastes and rice husks, and has not grown in recent years. New policies will likely mean more biomass power from other sources, such as agricultural and forestry wastes. Industrial-scale biogas, from agricultural and municipal wastes, is starting to make a contribution to power generation, with projected capacity of 30 GW by 2020. (Pic: A Biogas Plant)

Nuclear Energy

Nowhere is the resurgence of nuclear energy as evident as it is in China. As of 2008, China has 11 nuclear reactors with total capacity of 9.07 GW, and plans to raise to 70 GW by 2020, over 5% of its total installed capacity. It is expected to build some 50 new nuclear reactors by 2020; the rest of the world combined might build 15. Nuclear energy is to increase by more than 400%.
(Pic: A Nuclear Power Plant)

Biofuels is receiving increasing attention in China. Present production of bio-ethanol and biodiesel is minimal. Plans are underway to increase biofuels production from cassava, sweet sorghum and rapeseed.

Great promise lies with cellulosic ethanol, which many expect to become commercially viable within 7–10 years. China has vast cellulosic resource from agricultural and forestry wastes—up to half a billion tons per year—it might become
a major ethanol producer after 2020. It plans to become one of the world’s leading producers of hybrid and all-electric cars within years. (Pic: A Bioethanol Pump)

The emerging renewable energy and sustainable developments in China have provided enormous investment, business and participation opportunities to a wide spectra of related sectors, companies, organizations, governments; in the process of mitigating climate impacts.

In 2007 China had the world's highest total investment in renewable energy sources (excluding large scale hydropower plants) with expenditures of $10.8 billion, up 91% over 2006; and the largest installed renewable capacity at 152 GW.

With a commitment of USD180 billion from the government, China sets to boost its renewable energy development, in particular, for commercial-scale electricity generation as well as for related projects. By 2008, China ranks 5th as most attractive countries for investment in renewable energy, behind the US, Germany and India and Spain, in the quarterly Ernst & Young Country Attractiveness Indices.
China's Alternative Energy Revitalization Plan is yet another concrete illustration of the determination of the Chinese government to develop a low-carbon economy. A whopping fund of approx. USD 462 billion are earmarked to further catalyze renewable energy development over the next ten years through 2020.

It is technically feasible for China to meet its achieve its targets in energy security, emissions reduction and energy mix. It has the know-how, skilled labor. It also has the central government's aggressive policy, strong commitment, financial subsidies and tax incentives to promote economic growth and to improve the living standard of its people.

At a news conference July 16 2009, in Beijing, U.S. Commerce Secretary Gary Locke, on a mission to remove trade barriers hindering private-sector cooperation with China on clean energy, commended China's commitment to reduce carbon footprint. "The Chinese are taking unprecedented measures," he said. "They are a model for developing countries around the world, and should be applauded."

Critics of China's efforts to tackle climate change need to be more objective and responsible in their criticism. Follow through the progress in renewable energies that China is undergoing systematically, with real results for its people and for the climate. Give it time - Rome is not built in one day! While most of the world is finger pointing, China's hands are full shaping its new energy mix for sustainable growth and development! By the end of this decade, it is very possible that China will be dominating global production of the whole range of power equipments.

References and Related News:

National Development and Reform Commission: Ndrc.gov.cn
China's Sustainable Energy Future: Scenarios of Energy and Carbon emissions: LBNL
China Takes Over Carbon Market: Ipsnews Climate Change
Energy Related Carbon Dioxide Emissions: EIA
China Speeds Up Renewable Energy Development
China's Big Push for Renewable Energy: Sciam.com
PeopleDaily
China's Renewable Energy Law Takes Effect: Worldwatch.org
Worldwatch Report- Powering China's Development: Worldwatch.org
Chinese Wind Energy Association (CWEA)
China Pledges to Double Reliance on Renewable Energy by 2020
Chinese Renewable Energy Industries Association (CREIA)
On the Sunny Side of the Street:Greenpeace

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