Solar Energy in China

Climate change brings risks and challenges to mankind, but it also creates huge business opportunities, particularly in the renewable and green-tech sectors.

To achieve her goal in emission reduction of greenhouse gases to mitigate climate change, China plans to reduce energy consumption per GDP by 20% of 2005 levels by year end 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. Since 2007, about 7% of its coal and oil-fired power plants have been closed down.

Solar as a source of renewable energy is the key to the long-term energy security of a country like China. China has many of the world's biggest deserts, in Gansu, Qinghai, Inner Mongolia and Xinjiang. Deep in the deserts of Gansu province house the biggest desert solar power plant in China. Since 2005, China has begun large-scale construction of desert solar power plants and rooftop photovoltaic systems connected to the grid.

China's solar energy industry has already taken shape, and progress has been made in technological development and innovation.

China's huge domestic market and solid resource foundation are amongst some of the valuable prerequisite requirements for the large scale development and utilization of solar energy. The national energy bureau has finalized a solar energy promotion plan that aims to make China one of the greatest solar energy production bases in the world. Major government initiatives coupled with large scale demand from the export market has been attracting investments in the sector. China plans to install more than 500 MW of solar pilot projects within recent years.

China is the biggest solar water heater producer and consumer in the world.
Both her output and consumption of solar water heaters account for over a half of the world total.

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. It is estimated that, by 2010, the overall area of solar water heaters installed in China will reach 100 million square meters, amounting to a market capacity of RMB 60 billion.

(Solar Heater on Rooftop of Dezhou, China where the sun always shines. Here solar energy powers everything including heaters, street lights Greenpeace )

The annual growth rate in the coming years will be maintained at 20% - 30%. By year 2020 solar heating is estimated to reach 300 million cubic meters.

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.
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 Beijing Olympic sailing center. It is not only environmentally friendly but adds to the beauty of Qingdao's coastline by night.

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. In China, solar electricity generation costs are about 10 times higher than for coal. At present, the price of solar power is falling fast. Wuwei city in Gansu generates electricity for RMB 3 a kilowatt, more than 20 times cheaper than expected due to sharp cost drop of photovoltaic cells. It is expected to drop below RMB 1 in future, Between 2015 and 2020, solar energy prices could be at par with coal-fired power.

The solar energy market in China has been growing steadily. 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, and 70% in remote regions that have no power supply, 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 GW, 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 GW of solar power generated by the plants will eliminate 15 million tons of carbon dioxide emissions every year.

References and related news:

Solar Power Plants to Spring Up in China
Solar Power Scheme to Light Up Remotest China Wins International Green Energy Aw... 2008-6-24
Welcome to Solar Energy International: Sel
Integration Anticipated in China's Solar PV Sector
On the Sunny Side of the Street:Greenpeace
Solar Power Plants to Spring Up in China

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