Renewable Energy in China

الطاقة ماافسدته المتجددة الطاقة تصلح هل

)النفط(؟ التقليدية

أبرز أحد المتجددة الطاقة مصادر البيئة، حماية خبراء من كثير يعتبر فيما

يثير االرض، على للمناخ السلبي التغير قضية لمواجهة الممكنة الحلول

تلك استخدامات في التوسع إلى االتجاه جدوى حول تساؤالت آخرون

في الحاصل النقص سد او التعويض بالفعل يمكنها كان إذا وما المصادر،

مختلف في للبشر المستقبلية باالحتياجات الوفاء العالم من المناطق بعض

. العالم أنحاء

الطاقة لمصادر العالمي التوجه جدوى حول الجدل لحسم محاولة وفي

إن المتجددة، للطاقة العالمي المجلس رئيس صايغ علي قال المتجددة،

هذه استخدامات إلى التحول في طفرة اعتباره يمكن ما aحاليا يشهد العالم

. العالم في ربحية الصناعات أكثر من واحدة aأيضا تعد والتي الطاقة،

a قائًال " وأضاف على : الطلب وزيادة المناخية، التغيرات حدة لتزايد aنظرا

من واحدة المتجددة الطاقة أصبحت فقد الكهرباء، وخاصة الطاقة، مصادر

". بيئتنا في التغيرات لهذه الحلول أنسب

أن صايغ أوضح المتجددة، للطاقة العالمي المجلس تقارير آخر وحسب

نحو 2006العام توليد شهد الكهربائية 62، الطاقة من باستخدام غيغاواط ،

من أكثر الكهروضوئية الخًاليا وفرت كما الرياح، خًالل ميغاواط 170طاقة ،

. المنصرم العام

على يزيد ما إنتاج من وحدهما تمكنتا والبرتغال أسبانيا أن إلى 62وأشار

كل تسعى فيما الكهروضوئية، الخًاليا من الكهربائية، الطاقة من ميغاواط

المصدر هذه استخدام زيادة إلى واليابان، وألمانيا المتحدة الواليات من

نحو إلى للطاقة، . ٪ 30المتجددة الطاقة من استهًالكها إجمالي من

صايغ قال الممتجددة، الطاقة موارد الستخدام االقتصادية الجدوى وحول

الكبير للتقدم نتيجة قصيرة فترة خًالل تضاعفت الوقود خًاليا أسواق إن

خفض مع الخًاليا تلك كفاءة رفع أمكن حيث المجال هذا في تحقق الذي

. إنتاجها تكلفة

استخدام في للتوسع قدما طريقها تواصل النامية الدول أن إلى أشار كما

بالطاقة تعمل التي السخانات سوق شهد فيما الهيدروجين، طاقة

من أكثر بنسبة aتوسعا .25الشمسية، الماضية القليلة السنوات خًالل ،٪

معظم أن إلى األمريكية، الطاقة وزارة من هوفمان آالن أشار جانبه من

ستظل والغاز والفحم كالنفط األحفوري، الوقود أن إلى تشير التوقعات

المتوقعة الزيادة متطلبات معظم توفير في المتقدمة، بمكانتها محتفظة

. العالم في الطاقة استخدام في

توقعات أن المؤتمر، أمام قدمها التي العمل ورقة في هوفمان وأضاف

معلومات إدارة وكذلك للطاقة العالمي والمجلس العالمية الطاقة منظمة

لجميع االستهًالك في زيادة هناك سيكون أنه على تجمع األمريكية، الطاقة

. القادمة aعاما العشرين خًالل األولية الطاقة موارد

الطبيعي الغاز على الطلب معدالت نمو aأيضا المتوقع من أنه إلى أشار كما

للوقود مصدر كأكبر aمنفردا النفط بقاء مع اآلن، عليه هي مما أسرع بصورة

. الفترة تلك خًالل

- أحد الكربونية الغازات انبعاثات أن أكد األمريكي، الطاقة خبير أن إال

- قياسية بمعدالت ستتزايد المناخية التغيرات لظاهرة الرئيسية المسببات

من غيرها دون التقليدية، الطاقة مصادر على االعتماد استمرار بسبب

. المتجددة الطاقة موارد

االوروبي المتجددة الطاقة مجلس أعدها دراسة نشرت اخرى جهة من

يتزايد قد النظيفة الطاقة انتاج ان تقول حيث البيئة عن مدافعة وجماعة

عام بحلول العالم نصف حاجات اجراءات 2050لتلبية الحكومات اتخذت اذا

. االحفوري الوقود استخدام ضد صارمة

الطاقة صناعة عن المسؤول االوروبي المتجددة الطاقة مجلس وقال

) فيها ) بما المتجددة الطاقة ان جرينبيس االخضر السًالم وجماعة المتجددة

والوقود المد وطاقة الشمسية والطاقة المائية والطاقة الرياح طاقة

من تزداد قد كثفت 13.2الحيوي اذا الطاقة من العالم انتاج من المئة في

. الحراري لًالحتباس مكافحتها الحكومات

" للطاقة الجيد االستخدام جانب الى المتجددة للطاقة يمكن التقرير واضاف

عام بحلول الطاقة من العالم احتياجات نصف أن. 2050توفير هو السيء

". النفاد في اخذ الوقت

أصدرته تقرير من المتجددة للطاقة بالنسبة تفاؤال أكثر التوقع هذا ويعد

عام في الدولية الطاقة الطاقة 2006وكالة نصيب في بسيطة زيادة توقع

الى الطاقة من العالم احتياجات تلبية من بحلول 13.7المتجددة المئة في

.2030عام

يواصل أن الصناعي العالم لحكومات المشورة تقدم التي الهيئة وتوقعت

العالم في الطاقة امدادات على الهيمنة الطبيعي والغاز والفحم النفط

. القادمة العقود خًالل

وجماعة االوروبي المتجددة الطاقة مجلس أعدها التي الدراسة أن غير

الطاقة هيئة افتراضات عن تماما مختلفة افتراضات تضع االخضر السًالم

الى النفط أسعار ارتفاع بينها من عام 100الدولية بحلول للبرميل دوالر

واستخدام 2050 الطاقة استخدام في الكفاءة الى التحول الى سيدعو مما

. نظيفة طاقات

) ( " الى طريقها في الرخيصين والغاز النفط أيام ان الدراسة وقالت

تمثل." أوروبية منظمات االوروبي المتجددة الطاقة مجلس ويضم االنقضاء

المحركات وحتى الشمسية األلواح من بدءا شيء كل تصنع شركات

الهوائية.

.. المتجددة " الطاقة احتياطيات فان ذلك من النقيض على الدراسة واضافت

لتوفير يكفي بما كبيرة الفنية الناحية من عالميا اليها الوصول يمكن التي

". االبد والى حاليا العالم يستهلكها التي الطاقة أمثال ستة نحو

بنحو الطاقة على الكلي العالمي الطلب تراجع امكانية التقرير توقع كما

عام بحلول المئة في زيادة 2050ستة الى رئيسي بشكل يرجع ما وهو

. العالم سكان عدد تزايد رغم وذلك الطاقة استخدام في الكفاءة

كتابة في شارك والذي االخضر السًالم بجماعة العضو تيسكي سفين وقال

صرامة أشد خطوات الحكومات اتخذت اذا واقعية التوقعات تلك ان التقرير

. الحراري االحتباس لمواجهة

... " حاليا تقدم الحكومات أن هي المشكًالت احدى ذلك حدوث يمكن وقال

. غير وهذا المدعوم االحفوري الوقود مع للتنافس المتجددة للطاقات دعما

معقول."

( الطاقه الظاهره هذه ندرس البًالد من أى فى الرأى تضاربنا ولكننا

حيث ( الصين هى البًالد تلك أبرز من أن وجدنا التمحيص بعد ولكن المتجدده

الطاقه على الحصول وهو المشروع ذلك فى االدئه البًالد أول هى أنها

المشروع بذلك مهتمه كانت رويترز وكالة أن ونجد المتجدده

دوالر مليار200 لها خصصت بكين

على دوالر مليار200 الصين تنفق أن المنتظر رويترز: من ـ كونغ هونغ بالصناعة والًالعبون المقبلة عاما عشر الخمسة خًالل المتجددة الطاقة

النشاط. من حصة القتناص يتسابقون

ما ويتبقى شيفرون شركة بحجم نفطية شركة لشراء يكفي المبلغ وهذا النفط شركات كل في الحالية المتجددة الطاقة برامج لتمويل يكفي

عاما. وعشرين لخمسة الكبرى االوروبية

الى القاحلة شينجيانج سهول من وأجنبية صينية شركات تنشط ثم ومن طابقا40 بارتفاع توربينات نصب في لجواندونج المدارية شبه التًالل االختبارات واجراء الشمسية االلواح وتركيب الرياح من الكهرباء لتوليدالحيوي. الوقود الستخراج الذرة على

مصادر من الطاقة من حاجاتها من بالمائة عشرة توليد الى بكين وتهدف الهواء تلوث تفاقم يحركها رغبة وهي2010 عام بحلول للبيئة صديقة

ويثير االمراض من العًالج فواتير يضخم الذي المزمن البيئي والتدهورالعام. السخط

توليد مكونات من وغيرها التوربينات الى المشروعات تلك وستحتاج سيستمز ويند وفيستاس الكتريك جنرال قيام وراء السبب وهو الكهرباء هولدنجز انرجي سوالر تشاينا مثل محلية شركات عن فضًال وجاميسا

البًالد. في أنشطتها بتوسيع وصنتك

في استثمرت التي بارتنرز فاليو في صندوق مدير وهو هو نورمان وقال أن المرجح جيربوكسمن نانجينج الرياح من الطاقة توليد مكونات مزود أسعار ارتفاع مع الصين في المقبل االزدهار قطاع المتجددة الطاقة تصبح

نمو لدعم الطاقة الى بحاجة »الصين قياسية«. وأضاف لمستويات النفط 78 فوق مرتفعا قياسيا مستوى الخام االجمالي« وبلغ المحلي ناتجهاأمس. للبرميل دوالرا

االنتباه الى يدعون لكنهم الكتريك وشنغهاي بصنتك معجبون والمحللون سوالر تون ـ واي سوالر تشاينا مثل جدد متخصصين العبين الى أيضا

التايوانية.

نمو فرص ارتفاع أن »نعتقد أخير بحثي تقرير في لينش ميريل وقالت الي صالحا مكونا يجعلها صغيرة قاعدة من السيما الشمسية الطاقة

سويس كريدي المتجددة«. ويقدر الطاقة على تركز استثمار استراتيجية الصين في الرياح من الكهرباء توليد لطاقة المركب السنوي النمو معدل

من الفترة في المائة في20 و2010 و2004 عامي بين المائة في39 عند فرصة يمثل »هذا سويس كريدي من تشان أنجيلو . وقال2020 الى2010

الرياح«. من الكهرباء توليد توربينات لمنتجي ملحوظة نمو

المواد نقص مثل االولى النمو مراحل مشكًالت فان القصير المدى وفي في الشمسية الطاقة حقل في العاملة اندستريز موتيك يواجه الذي الخام

معضلة. تكون قد تايوان

الحماس تراجع أو محتمل تشريعي تحول من خاص بشكل المحللون ويحذر الى واالفتقار االن حتى والمساعدات للحوافز تفصيلي مخطط وغياب

المجال. هذا في رسمية خبرة

على نزوليا ضغطا تشكل قد المنافسة أن من سويس كريدي حذر كما اذا أرباحها. لكن على ثم ومن الرياح من الكهرباء توليد توربينات أسعار

أكبر أنها بالفعل تدعي التي الصين فان يرام ما على شيء كل سار

أكبر تمتلك قد الكوكب سطح على المتجددة الطاقة في سنوي مستثمرالرياح. من الكهرباء لتوليد العالم في سعة

الرياح من الكهرباء توليد قدرة من جيجاوات30 امتًالك الى الصين وتهدف 30 و13 بين لتغذية الماضي العام واحد جيجاوات من ارتفاعا2020 بحلولالصناعة. لتقديرات وفقا بالكامل منزل مليون

؟ نستفيد ماذ كله هذا بعد ولكن

بأكمله العالم يكون سوف2030 عام بعد أن تعلم أن مصر على يجب الطقات فى إستثمار هناك يكون أن فيجب المتجدده الكاقه يستخدم

أن علينا ويجب ( وغيرها والشمسيه والنوويه الحفريه ) الرياح المتجدده وطاقتها الشمس بها توجد قاره فى جعلنا أن علينا الله نعمة من نستفيد

بوضع يقوم سوف األوربى اإلتحاد أن4/11/2009 فى األهرام نشرت فقد فيجب العجوز قارته إلى ويحولها أفريقيا قارة فى مجمعه شمسيه خًاليا النعم تلك من اإلستفاده وتحاول تجتمع أن األفريقية الدول على

I. Potential and Current Development of Renewable Energy in China

China is rich in renewable energy resources. Since the 1970s, the Chinese government has recognized theimportance of developing renewable energy for off-grid rural and remote areas and supported development of smallhydropower, biogas, and small wind turbines to provide energy and electricity to those isolated populations. Whileprogress has been achieved in developing renewable energy in rural areas, the potential for expanding the use of thisclean energy throughout China is great.• China’s wind capacity is officially estimated to be 253 gigawatts )GW( )Shi 1995; Gu & Liu 2000(, distributedmainly along the coastline and in the northern provinces including Inner Mongolia, Xinjiang and Qinghai. However,by the end of 2000 the grid-connected wind power stands only at 345 megawatts )MW(.• Potential biomass energy resources )e.g., agricultural wastes( are estimated to be 650 million tons of standard coalequivalent )Mtce(, which equals half of China’s current primary energy consumption )Zhang & Shi 2000(.• In two-thirds of the Chinese territory, the solar radiation intensity exceeds 140kcal/m2/hr with duration of over2000 hours per year. Currently, China has the world’s largest and fastest-growing market for solar water heating.

The photovoltaic )PV( market is small but growing rapidly. There was over 19 MW of photovoltaic equipment Installed in 2000.• There are 3200 locations with geothermal reserves in China. Low and medium-temperature reserves in over 40geothermal farms contain approximately 3160 Mtce )Zhang & Shi 2000, Gu & Liu 2000(. High-temperaturegeothermal reserves that can be used for power generation are equivalent 5800 MW.• The exploitable reserve of small hydropower stands at around 75 GW. By the end of 1998, there were over 44,000small hydropower plants with a total installed capacity of 22 GW )Gu & Liu 2000(.The Chinese government has, in recent years, increased its commitment to the development of renewable energy, asoutlined in the New and Renewable Energy Development Program 1996-2010. Jointly developed by three key governmentcommissions—the State Planning Commission )SPC(, State Economic and Trade Commission )SETC(, and StateScience and Technology Commission )SSTC(, this program aims to improve the efficiency of renewable energy,reduce production costs, and enlarge the share of renewable energy in the overall energy mix. The 1995 ElectricityLaw also extends support to solar, wind, geothermal and biomass energy for power. In the newly-released five-yearplan for industrial development, SETC sets the target of 1.2 GW electricity production from new, renewable energyfor the power industry, a nearly four-fold increase from last year’s production of 330 MW.(http://www.setc.gov.cn/home/index.htm)

II. Obstacles to China’s Renewable Energy Development

China’s abundant renewable energy resources and huge potential market, combined with the growing concern about energy-related environmental problems, have fueled the demand for more vigorous development of renewable energy. However, a series of institutional, financial, and technical barriers have to be overcome before significant progress can be made in developing such clean energy sources.• Lack of awareness of the potential for commercial applications of renewable energy among Chinese decision makers still constrains the policy support for renewable energy development.• Current government renewable energy policy lacks specific, clear long-term development objectives, workable incentives, and financing mechanisms.• Funding for research and development is inadequate.• Insufficient market regulation and the lack of industry standards suppress demand because of widespread product quality and service problems.• Current renewable energy applications are small and scattered and thus incapable of achieving economies of scale.• Information exchange is inadequate among renewable energy research centers and industries because ofinstitutional fragmentation as well as their geographical isolation. The renewable energy industry in China has a somewhat limited access to

recent technological advances in other countries due restrictions )e.g., relating to intellectual property rights(.• Commercial experience is lacking in the Chinese renewable energy community.

III. International Support for China’s Renewable Energy Development

China’s efforts to develop renewable energy have received strong support from the international community.International and regional development agencies )the World Bank, UNDP, Asia Development Bank( have provided financial assistance for renewable energy development in China. Some countries, including the United States, Australia, and the Netherlands also are actively involved in bilateral aid and technical assistance for renewable energy. Some examples of multilateral and bilateral renewable energy projects are summarized below:

Technology Cooperation Agreements Pilot Project )TCAPP( TCAPP is an initiative of the U.S. governmentthat is assisting developing countries in attracting clean energy investments that will meet their development needs and reduce greenhouse gas emissions. In late 1997, TCAPP was initiated in China. In April 1999, the State Development Planning Commission of China )SDPC( and the U.S. Environmental Protection Agency signed a Statement of Intent for a three-year effort )Clean Air and Clean Energy Technology Cooperation project(. The National Renewable Energy Laboratory )NREL( leads the TCAPP implementation for the U.S. government andSDPC is the lead organization for this project in China. Teams have been formed to work on the following six fields: wind resource assessment; wind turbine testing for certification; wind business partnerships; motors training; motor testing, labeling, standards, and certification; and motor financing and business partnerships.(www.nrel.gov/china)

The U.S.-China Protocol for Cooperation in the Fields of Energy Efficiency and Renewable EnergyTechnology Development and Utilization This Protocol was signed February 1995 by the U.S. Department ofEnergy and the State Science and Technology Commission and renewed for five years in April 2000. It focuses on three goals: 1( to help China diversify its energy resources and thereby reduce its future demand for oil; 2( to mitigate environmental damage associated with energy consumption through deployment of renewable energy and energy efficiency measures; and 3( to enhance U.S. industry competitiveness in China’s energy market. Seven specific Annexes to the Protocol have been developed and are now operating. Five annexes pertain to renewableenergy, which NREL implements in collaboration with various partners in China: rural energy, wind energy, business development, geothermal energy, and policy and planning. (www.nrel.gov/international/china/protocol.html)

World Bank/Global Environmental Facility )GEF( Renewable Energy Program: China-Renewable Energy

Development Project This project aims to establish sustainable markets for wind and PV technologies so as to supply electricity in an environmentally sustainable manner and to provide modern energy to remote rural populations. The World Bank and GEF will provide $100 million and $35 million in funding, respectively. The project was approved in June 1999 and is now underway. (http://www.worldbank.org.cn/english/content/702q1225506.shtml)

UNDP/GEF Capacity Building for the Rapid Commercialization of Renewable Energy Program

Launched in April 1999, this five-year program consists of capacity building, technical assistance, and technology transfer activities that address the challenges to the commercialization of renewable energy in China. It couples capacity building activities in the fields of resource assessment, standards development, and business and finance, with work in specific market sectors )bagasse, biogas, hybrid village systems, and large-scale wind(. This project led to the establishment of the Chinese Renewable Energy Industries Association )CREIA(. This project is jointlyfinanced by the Chinese, Australian and Dutch governments and GEF and implemented by UNDP in partnership with the SETC and the Chinese State Environmental Protection Administration. (http://www.ccre.com.cn)

World Bank Renewable Energy Scale-up Program This program will help enable commercial renewableelectricity suppliers provide energy to the electricity market efficiently, cost-effectively, and on a large scale. It aims to support the implementation of a national policy framework that would require a share of electricity to utilize renewable resources—a mandated market policy. This mandated market policy is required to address the failure of the market price for thermal electricity to reflect the pollution costs that burning fossil fuels has had on society. This program will support implementation of necessary laws and/or regulations, as well as a range of other measures to strengthen commercial capacity to scale up renewable energy markets. The program will also directly support a small number of investment projects. Project preparation is under way.

IV. U.S. Environmental Nongovernmental Organizations in ChinaOver the past five years, U.S. environmental nongovernmental organizations )NGOs( and universities—often in partnership with the U.S. Department of Energy and Chinese government agencies—have become increasingly active in energy projects and research in China. The Energy Foundation, David and Lucile Packard Foundation, and the W. Alton Jones

Foundation are the main grant-giving organizations supporting such NGO activities in China.The NGOs most active in this area include: Natural Resources Defense Council, Joint Institute for Energy and Environment, International Fund for China’s Environment, Center for Resource Solutions, WWF-China, SolarElectric Lighting Foundation and Greenstar. )Full updated descriptions of most of these NGO projects can be Found in the Wilson Center’s China Environment Series

CHINA’S ENERGY CHALLENGES

China’s recent ventures into the new and renewable energy sectors are propelled by the need to achieve total ‘energy security’. Dependence on foreign oil coupled with a heavy reliance on coal threatens China’s monumental growth and vacillating environment. Fearing an energy crisis, power shortages, and backlash from rural communities left without power, Beijing has began to embrace, among numerous other projects, renewable energy development.China’s energy demands are nothing new, but they are increasingly becoming more urgent for Beijing. Chinese President Hu Jintao, at the APEC meeting last September in Australia, aired the CCP’s energy imperatives, “We should ensure that both production and consumption are compatible with sustainable development. We should optimize the energy structure, promote industrial upgrading, develop low-carbon economy, build a resources-conserving and environment-friendly society and thus address the root cause of climate change.” President Hu’s statement not only respects the APEC agenda but clearly demonstrates Beijing’s approval for alternative energy developments.Currently 70 percent of energy consumption in China derives from coal; by 2030 optimists would be lucky to see this level dip to 60 percent. China’s recent State Council Information Office, White Paper on Energy )December 26, 2007(, stated that they rank third in coal reserves with 1,034.5 billion tons. Add this to the estimated 2.5 years it takes to build, from conception to construction, a fully operating coal plant and you can see the implications. However, China also knows that coal reliance adversely affects the environment—which in turn leads to social disharmonies.

China understands the energy challenges it faces and in turn has looked towards renewable energy to alleviate oil dependence.CHINA’S GOALS

China’s goal, by 2020, is to have 15 percent of the countries primary energy stem from renewable sources. Beijing, via recent law )Renewable Energy Law, enacted January 2006(, deems hydroelectricity, wind power, solar energy, geothermal energy, and marine energy as verified renewable energy sources.Nuclear power, due to the hard to place waste it creates, cannot be considered truly sustainable while hydropower by 2020 is estimated to be almost fully exploited. Projects, funding, and interest in the renewable energy sector center around wind, biomass projects, and, to a lesser degree, solar power.

A quick look at the hard numbers illustrates both the Central government’s and private businesses’ interests. A recent )spring, 2008( report, issued by the National Industry and Commerce Joint New Energy Business Association, estimates that 76 billion RMB )10.4 billion USD( was invested into China’s new energy and renewable energy industries in 2007. Nearly half )48 billion RMB~ 6.56 billion USD( of the estimated investments funded wind power and hydropower projects. Solar, bio, and methane, energy companies invested roughly 26 billion RMB )2.8 billion USD(.The 2006 Renewable Energy Law, championed among international

environmentalists, promises tax incentives and rebates for firms pursing renewable energy initiatives. China understands the energy challenges it faces and in turn has looked towards renewable energy to alleviate oil dependence. International and domestic companies alike recognize this need and, supplied with innovation, favorable tax policies, and a nod from Beijing, the wind and solar energy sectors have taken off.

China’s deft maneuvers in the renewable energy sector have lead World Watch )a prominent environmental research group( President Chris Falvin to state, “…China will be number one in less than three years in every renewable energy market in the world.” China’s renewable energy sector expanding at a break-neck pace even though China will likely surpass the US in carbon emissions in a decade’s time. China strives to capitalize on renewable energy sources—for both ‘energy security’ and environmental causes.

The following will examine China’s key renewable energy sectors, their current status, future goals and challenges, and the companies that drive them.

WINDOver the past year wind power has been the best performing energy sector. The result: companies and governments from around the world are expected to spend as much as USD $150 billion on wind power projects over the next five years. Vestas Wind Systems )Denmark( and Iberdrola of Spain will lead wind project spending as international lawmakers provide financial incentives for wind power—a non polluter, comparatively inexpensive, renewable energy.

Wind power companies across the board have seen profits inflate. Gamesa Corporacion Technogica, a Spanish turbine manufacturer, which primarily sells parts to China, Spain, and the US, has increased its value by more then two thirds since 2006.

In 2005 China was the worlds 10th producer of wind energy. Fast forward two years China ranks number five globally in wind energy production and experts predict China will attain the number one status )currently held by Germany( by 2020. In 2007 alone China created 1,300 megawatts of wind power—the equivalent energy output of two average size nuclear power plants.

In the Spring of 2008 the National Development and Reform Commission )NDRC(, one of China’s top economic planning agencies, raised the bar—they want to produce 100,000 megawatts of wind energy by 2020 from its

initial goal of 20,000 to 30,000 megawatts. The recent revisions have established energy conservation as a central State policy and for the first time career advancement for local government officials is tied to achieving energy conservation goals.

Simply put there aren’t enough wind turbines to meet demand—a demand that has escalated due to China’s recent renewable energy priorities.

Global demand for wind turbine equipment is great and supply is becoming increasingly scarce—driving up prices and concerns. Simply put there aren’t enough wind turbines to meet demand—a demand that has escalated due to China’s recent renewable energy priorities.

Unfortunately for China, and the world, its ability to produce wind energy equipment is lacking. In 2006 China produced enough wind turbines to generate only 540 megawatts )that’s roughly 300 average-sized machines( of energy, only half of what the country demands per year.

China’s domestic market although still not strong contains a few companies that are looking to enter the global market. China High Speed Transmission Equipment Group, a Chinese company focusing on the gearbox manufacturing for wind turbines, works domestically but plans to quadruple production and compete internationally )namely with Siemens and Hansen Transmissions( in two years.

Worse yet China relies on importing key wind-turbine parts which further pressures the global supply of wind technologies. Beijing, in an effort to support the country’s growing domestic wind turbine manufacturing industry, will refund value-added tax and cut tariffs on wind-turbine parts. The government legislation helps Chinese turbine makers dismiss tax obligations so they can be more competitive in global bidding for wind turbine components.

Chinese wind power companies also receive privileged treatment under China’s Renewable Energy Law. Large scale projects, producing a capacity that exceeds 100 megawatts, receive substantial government support. Customs tax and VAT are waived on imported equipment and operators have the right to agree to long term purchase agreements with local power grid thus guaranteeing revenues.

China’s wind energy demands are ambitious and create both international competition and praise. Companies like General Electric, Vestas, Gamesa, and Vensys, to name but a few, are paving the way for wind projects in China. Growth and profits in the wind sector will likely continue in China as government legislation and demand outpace supply.

For a large proportion of companies established or establishing operations in China, remote regions in the north )Xinjiang Province or Inner Mongolia( provide a consistent supply of wind, but not people. Finding suitable candidates to lead and organize a wind farm in distant regions proves challenging for most organizations. Relocating a Chinese candidate from a

one city to another, especially to a lesser developed one, is difficult and remains mostly a short term solution.

Although the candidate pool continues to mature, the growth of the industry in China has outpaced it. New and existing firms struggle to find key talent for technical positions because they demand a combination of technical experience and English skills that are often scarcer in remote regions in China. Companies have had and continue to invest in candidates with less experience and qualifications and train them while providing them with strong support from the head office.

SOLAR ENERGY

In recent years, China has emerged as the world’s largest manufacturer of solar photovoltaic )PV( panels. Driven largely by strong demand in Europe, almost all of the solar panels manufactured in China have been exported to overseas markets. However, the current global financial crisis, coupled with recently dampened financial incentives for solar power in some parts of Europe, has significantly contracted overseas markets. The solar manufacturing industry in China is, as a result, under intense pressure to fend off what appears to be a bursting “bubble.” By promoting China’s domestic solar market, however, the Chinese government is presented with a unique opportunity to sustain the domestic solar industry, create more jobs, and enhance energy and environmental security. To be spurred into action, however, China’s planners must appreciate the true value proposition of solar, understand the present bottlenecks limiting solar deployment, and respond with appropriate policy actions to overcome these hurdles so as to create a vibrant domestic solar market

It is estimated that China’s vast tracts of open land soak up some 2,000 hours of sunlight per year )the equivalent of 1,700 billion tons of coal( —more then any other region in the same latitude. China has the space and the sun to meet their energy goals, but the tangible and intangible costs for undertaking such an initiative would be numerous.

The NDRC estimates solar power will generate 300,000 kW by 2010, up from 70,000 kW in 2005, it cannot compete with other renewable energies like wind and hydro power because the sector is still technologically underdeveloped and material and production costs remain high. Furthermore, the industry struggles to achieve economies of scale with little adoption and implementation in China leading most solar panel manufacturing companies to export the majority of their products.

There are more than 150 Chinese companies producing photovoltaic )PV( cells )cells that convert light into energy( and they produce a third of the world’s solar cells. 90% of solar products in China are exported because, until very recently, demand at home has been scarce. The global market

for solar panels and cells has grown at a 38% compound annual rate since 2001 which has contributed to global shortages of polysilicon—a key ingredient for photovoltaic cell production.

Currently, China depends on imports of raw materials and exports finished products. This gives foreign firms like Wacker Chemie, Mitsubishi Materials, Sumitomo Titanium, and select others )manufacturers of polysilicon( a significant amount of control over the direction of the domestic solar PV industry. Chinese PV manufacturers are competing with electronics and chip manufacturers, whose products also use polysilicon, for limited supply. This forces them to submit to high raw material costs undercutting most existing labor or tax advantages.

Chinese support for solar energy remains tepid because of the high costs and underdevelopment of the industry.

Alternative routes do exist and they rely less on polysilicon and more on new technologies. Domestic Chinese firms, notably Suntech Power and Yingli, are exploring ‘thin film’ technologies that require little to no polysilicon to wean off high priced imports. Solar thermal technology is another solution for the tight polysilicon supply situation. However, the solar thermals exciting possibilities have only began to be explored in China.

Beijing is unlikely, in the short term, to help domestic energy companies invest in top grade polysilicon development projects. Today China uses solar power mainly to power remote and sparsely-populated rural regions that are not connected to power grids. It proves more economical then developing power stations in far flung provinces like Tibet, Qinghai, or Xinjiang. Still, solar energy is challenging to maintain and material shortages plague output results, leaving many villages and townships with flickering hope.

Chinese support for solar energy remains tepid because of the high costs and underdevelopment of the industry. China’s Renewable Energy Law mandated the state grid allow 100% feed-in for electricity from renewable sources, as well as implement set feed-in tariffs )born by end users(. Feed-in tariffs are structured to encourage swift adoption of renewable source by grid operators and also make renewable energy and equipment manufacturers more efficient and profitable. While specific tariffs have been set for bio-mass and wind power projects, tariffs for solar energy have not been. The NDRC is looking at the long term potential for solar energy and does not see solar energy as an immediate priority as it is expensive and unwieldy due to material and intellectual shortages.

Solar electricity generation has brought together Chinese companies and international partners to build production lines and introduce new technologies. China’s solar power sector is still young and many Chief Engineers at Chinese solar companies have benefited from international

study, work experience and research. However, internationally trained talent, with appropriate qualifications, are few in number as the market grows.

BIO FUELS

China is the world’s third largest oil consumer, after the United States and Japan, and imported a record 36.38 million tons of refined oil in 2006. China’s dependence on imported oil has pushed Beijing to develop and produce liquid biofuels like ethanol and bio-diesel on a large scale. By 2020 China wants to cut usage of refined imported oil by 10 million tons—nearly a quarter of its consumption—and replace it with biofuels. Using crops and excrement from China’s country side to develop biofuel projects will not only help meet growing energy demands but will rejuvenate rural economies. Biofuels, according to Chinese authorities are ranked the most important energy source after coal, oil, and natural gas.

Although controversial, opening and developing biofuel plants are also expected to cut carbon emissions. If China’s 11th Five Year Plan goal of producing 5.5 million kilowatts of biofuel energy is met, an estimated 2,200 tons of carbon dioxide emissions will not be released into the atmosphere. However, biofuels present challenges. In a recent World Economic Outlook )2007( the InternationalMonetary Fund expressed worry over as increasing competition between biofuel materials and food consumption for agricultural products will drive up crop prices. The worry is China, already the third ranked leader in biofuel production, will invest in too many biofuel projects and drive up domestic and global food prices.

Beijing, recognizing the potential danger, requires that every new and expanding biofuel operation undergoes assessment and authorization by the NDRC.Currently China has dozens of biofuel companies-rank among them is )Hainan Zhenghe Bio, Sichuan Guchen Youzhi Chemical, and Fujian Zhuoyue( New Energy. Since 2006 biofuel plants, from private, state-owned, joint venture, or foreign-owned enterprises, have sprung up from Shanghai to Xinjiang. These plants mainly convert rapeseed oil and imported palm oil into biofuels while also working, to a lesser degree, with used cooking oil and assorted vegetable oils.

The increased demand for ethanol and biofuel material has prompted China to look overseas for material and production opportunities. Biofuel material, mainly produced in China, is also primarily imported from South America—namely Brazil. The China National Offshore Oil Corporation )CNOOC( in 2007 is investing USD 5.5 billon in an Indonesian based project that will produce biodiesel from palm. Increasingly international biofuel projects are stimulating trade and creating dynamic opportunities.

Government subsides and encouragement for biofuel projects will make China a leader in the biofuel industry and the sector will likely become one of Chinas core competencies. Rising food prices and the threat of decreased biodiversity make biofuel production risky—if not truly renewable. Forests, hosting a wide array of plant and animal life, will be

ploughed over for biofuel crops while escalating food prices could prove perilous as 1.3 billion people need to be fed. Problems exist but Beijing will continue to aggressively produce enough biofuels to wean off foreign oil and cut down on carbon emissions.

RENEWABLE ENERGY SECTOR CHALLENGES

While China’s actual renewable energy improvements and advances remain questionable, the fact is obvious that the government is highly motivated to support the global Environment movement. Candidly announcing its own environmental ambitions, while creating subsides and tax incentives for renewable energy projects, China clearly indicates its support for the sector. Beijing’s actions encourage continued foreign investment from countries that are committed to environmental protection, as well as the continued development of a new industry in China.