China is expanding gigantically in manufacturing and tertiary sectors. It is also engaging itself in a sustainable path towards a low-carbon growth strategy. A development approached is emphasized on renewable energy sources. There have already been 11 five-year plans (2006 to 2010) established to assure investments in the clean energy, where the prime focus is energy efficiency and renewable energy.
The initial plans established in China, was geared to decrease the per-unit GDP energy consumption by 20 percent in comparison to 2005. Another, stunning goal set by the Chinese government is to have renewable sources of energy representing 16 percent of its primary energy by 2020.
In 2005, a Renewable Energy Law was enacted in China to support the development in clean energy. The legal framework provides financial incentives, including national subsidies, tax preferences for renewable energy projects, and compulsory purchase by power grid operators from registered renewable energy producers. The diverse attributes of the law have spurred the growth of both solar and wind power.
Wind Power in China
The annual growth rate of wind power capacity has been above 100 percent for the period 2005 to 2009. Moreover, in 2009 there were more than 13.8 GW of wind power installation. On a world-wide agenda, China led in terms of added wind energy capacity and is now second on wind installed capacity just behind the United States. The country is not stopping with small aims, the government has augmented its target of 30 GW to 100 GW installed capacity by year 2020.
There have been special polices devised to support the domestic wind turbine manufactures. This includes policies that promoted joint-ventures as well as technology transfer. The government (Ministry of Science and Technology) has over several years provided subsides for research and development in wind energy. The most significant initiation of this policy was seen in 1996. Some of the large companies involved in the installation of wind power are Dongfang Electric, Sinovel Wind, Goldwind Science and Technology. They represent roughly half of the firms in the industry. Also, prior to 2008 the wind energy market was mostly ruled by foreign firms.
Solar Power
China became the world’s leading solar PV manufacturer in 2009. The country produced as much as 45 percent of the world supply of solar photovoltaic in 2009. The local solar market is relatively young. There was an estimated 160 MW of solar PV installed and linked to the national grid in 2009. However, there are colossal projects of a total capacity above 12 GW in the pipeline. China could very soon become a market leader in solar energy both in Asia and the Globe. The government has similarly to wind energy expanded its goal for installed capacity for year 2020 from 1.8 GW to a total of 20 GW.
The country is already the world’s largest market for solar water heaters. It represents more than 50 percent world’s capacity. One in every ten households in China use solar energy to heat water. This represents a total of 10 percent of Chinese’s households that uses any spot of the potential 160 million square meters of land area available to harness solar energy. The magnitude of the growth of the solar water heater sector is fundamentally thanks to the profitability attached to the business. In other words, extremely lucrative revenues can be reaped by installing solar water heater for business and private use.
Solar water heater does also have sanitation and health benefits. They provide hot water at a reasonable price. National polices has also installed hot water systems for schools, hospitals, restaurants and swimming pools.
The green sector has created enormous employment. The industry represents an output value of US$ 17 billion and does employ roughly 1.5 million people as per 2009. In more details, 600, 000 worked for the solar thermal industry, 266,000 in biomass energy, 55,000 for the installation and manufacturing of solar photovoltaic, and 22,200 in wind power. The employment in the energy sector rose by 300,000 in 2009. This demonstrates the expansion of the renewable energy sector.
In simple terms, China is an example for the world. Its policies have stimulated renewable energy to grow sustainably. It has provided income, created employment and has equally flourished a low-carbon nation.
Source: UNEP
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