The most popular alternative energy in China

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China is now the world's second largest energy consumer after the United States, and its demand for energy is increasing. According to the "China Green Technology 2009" report released by an open source business cooperation organization called China Green Technology Initiative at the summer summit of the world economic forum held in Dalian on September 10, China's current energy consumption accounts for 16% of the world. China is the world's largest coal consumer and the world's second largest crude oil consumer. Percent of China's electricity supply comes from coal combustion, which is the main source of greenhouse gases. In the near future, China will still maintain a strong dependence on coal. In order to meet the rising domestic energy demand, China plans to increase coal-fired power generation capacity, equivalent to building two 500 megawatt (MW) power plants every week

some people may feel hopeless about these figures, but others see prospects and opportunities from them. Over the past six months, the Chinese government has promulgated a number of laws, regulations and financial measures to encourage the development of alternative energy. At the same time, the investment of international and domestic companies in this field is also in the ascendant. For example, on August 20, Ge drivetrain technologies, a subsidiary of GE Transportation, and Chongqing Xinxing Wind Energy Investment Co., Ltd. announced the establishment of a joint venture to produce large-diameter gears for the wind turbine industry. On September 8, first solar signed a memorandum of understanding with the Chinese government to build a 2 gigawatt (2gw) power plant in Ordos City, Inner Mongolia Autonomous Region, China. The project will be completed in four phases within ten years

energy enterprises in China's major countries are not sitting on the sidelines. In mid August, following the approval of Guodian power, Huaneng Group, Datang Group and China Power Investment Group for investment in Inner Mongolia Autonomous Region, Huadian International announced to invest 120million yuan to establish a joint venture to develop wind power projects in Inner Mongolia Autonomous Region

wind power generation is becoming a hot spot for investment. Jeff Jiang, managing director of Renaissance carbon investment (RCI), pointed out that one of the reasons is that wind energy may be the cleanest energy available at present. RCI is a carbon investment and trading company subordinate to pivot international, an American private equity company. Jiang pointed out that unlike hydropower, wind power plants do not have to be built in areas close to water or arable land. However, the main problem of wind power generation is to transfer power from remote areas in China (such as Inner Mongolia and Xinjiang) to areas in urgent need of power

China's wind power market is developing rapidly. In the past four years, the annual installed capacity has doubled, reaching 12 gigawatts (12gw) in 2008. Today, China's total wind power installed capacity ranks fourth in the world, accounting for 10% of the world's total wind power installed capacity. The top three are the United States, Germany and Spain

the development of solar photovoltaic field is also booming, but the development speed is relatively slow. In 2008, in order to seek safer materials, China's solar photocapacitances reached 150MW, accounting for only 1% of the world's total. However, China's production of photovoltaic cells accounted for 30% of the global total, and 95% of its production capacity was exported in 2008

China's alternative energy industry has not been immune from the impact of this round of world economic recession. On August 26, the working meeting of the State Council chaired by Premier Wen Jiabao warned the outside world that some domestic industries are facing the problem of overcapacity and must be guided and supervised. The industries mentioned include steel, cement, glass, coal chemistry, and alternative energy industries, such as solar cells and wind power equipment

overcapacity is also one of the topics of the large-scale forum "green technology: call for action" jointly held by Shanghai American Chamber of Commerce and other organizations in Shanghai global financial center on September 7 - 8 this year. The tone of the forum was very positive and optimistic. Jim Finn, managing director of United solar ovonic, a company that produces integrated roof solar photovoltaic products, said that once demand recovers, the problem of overcapacity will be solved

supportive policies appear frequently

regardless of the global economic environment, the development of alternative energy needs the strong support of the government. The first important commitment made by the Chinese government to the energy issue is that the National People's Congress has set important energy goals in the Eleventh Five Year Plan (2006-2010), including reducing the energy consumption per unit of GDP by 20% between 2006 and 2010. In addition, the national development and Reform Commission (NDRC) issued the medium and long-term development plan for renewable energy in September2007, requiring that by 2020, 15% of China's electricity will come from renewable energy (including large-scale hydropower). By 2010 and 2020, the power generation capacity of non hydro renewable energy is planned to reach 3% and 8% of the total power generation

there are signs that these goals are very effective. Recently, the Chinese government has revised some plans because the development speed of some industries has exceeded the expected level. For example, at the beginning of 2009, the 2020 wind power generation target was updated from 30GW to 100gw, and the planning target of solar photovoltaic capacity was also updated from 1.8gw to 20GW

in addition to setting targets, the central government also provides financial support. On May 12, liangzhipeng, director of the new energy department of the national energy administration, made a speech at the "Renewable Energy Finance Forum" in Beijing. In an interview with the media, he said that by 2020, the government plans to invest a total of 3trillion yuan in the alternative energy industry

at the same time, the National People's Congress is currently reviewing the "draft amendment to the renewable energy law", which will require the state to implement a full guaranteed purchase system for renewable energy power generation. And put forward requirements for the minimum quota index of the total guaranteed purchase of renewable energy power generation that power enterprises should meet. At the same time, another provision in the amendment paves the way for the state to establish a renewable energy development fund in the nature of government funds

there has also been a positive momentum in financial subsidies. The Ministry of Finance provides subsidies to wind power manufacturers and domestic wind turbines and wind turbine component manufacturers. The Ministry of finance also launched the Interim Measures for the management of financial subsidies for solar photovoltaic building applications in March 2009. Later, the three national ministries and commissions issued the Interim Measures for the management of financial subsidies for the golden sun demonstration project in mid July to subsidize photovoltaic power generation

in addition to the measures taken by the central government, provincial and local governments can also use important policy levers to support the development of alternative energy within their jurisdiction. China Green Technology Organization pointed out that, for example, green technology and other high-tech enterprises in Yixing Industrial Park in Wuxi, Jiangsu Province can enjoy the preferential policy of tax reduction and exemption for five years. Other incentive measures include preferential policies such as office rent, direct financing, initial public offering preparation support, employee training subsidies, etc

lack of synchronization

even if China achieves the target of 15% power generation from renewable energy by 2020, the main force of its power supply is still coal power generation. China's green technology report points out that China's total power generation may double between 2008 and 2020, which means that greenhouse gas emissions will continue to increase

one of the biggest challenges of wind power is how to match wind power with the national power demand. Jiangshaoqing of RCI pointed out that, unlike thermal power generation, wind power generation is still not very stable and does not meet the requirements of national electricity

jiangliping, deputy chief engineer of Beijing Institute of economics and technology, said in a recent interview with daily economy that the pace of rapid development of wind power projects is not commensurate with the national power planning. The main technical challenge is to balance the current technical capacity of national power with the growing demand for alternative energy, especially wind power. Jiang said that this will be a costly but indispensable measure. At the same time, it does not rule out the fact that some local power enterprises are not as proactive as power developers

at the green technology forum in Shanghai, many speakers were cautious about these challenges. One of them thinks that the State Grid is not committed to the development of renewable energy. Another suggested that power generation enterprises should ensure that future power generation can be connected with the State Electricity Union before the project is started. Another said, "the implementation, transparency and relevant procedures of the regulatory system in the renewable energy field are not clear."

Andrew Aldridge, Greater China director of climate change capital, an investment bank, pointed out that the most common questions asked by enterprises are: when can our project be connected with China Telecom, and when can we get subsidies. He added that in the United States, the number of consolidation cases in the alternative energy industry was increasing due to investors' concerns about financial statements. "In China, investors do not pay enough attention to financial statements, which may also be one of the reasons for overcapacity, but I think there will be more industry consolidation in China."

although these problems pose great challenges, they are also opportunities for the future. Craig Adams, executive director of China Green Technology Organization, thinks so. He pointed out that state grid faces two major tasks. The first is to update its network components, as well as the reconstruction and upgrading of electricity, in order to control and manage the transmission network more effectively. The second is to connect the electricity of major regions in China. "Once all the electricity is connected, even if one of them is disconnected, the other electricity can be supplied in time. At present, the transmission energy consumption of electricity is close to 7%, and 70% of the wind power produced in China is not connected with the state power grid. However, this also reflects a huge market space. He added that by 2020, China will invest $1.3 trillion in upgrading the state power grid, and another $88billion in upgrading. 2) pay attention to the sound of operation in the experiment Level UHV transmission system, which brings great opportunities for enterprises engaged in Infrastructure 2. What backup construction needs to be done for software reinstallation, such as ZTE, Huawei, Cisco, various power instrument companies and software system companies. "

AI Guoqiang predicts that the public and private sectors will play an important role in coping with China's growing energy demand, such as establishing unified implementation standards, launching new financing mechanisms, and establishing public-private partnerships and Sino foreign cooperation frameworks

indeed, more clean energy will emerge in the future. "We are still in the initial stage of wind power generation. There are few wind power plants operating at full capacity. In five to ten years, more factories and alternative energy will enter the whole system," said jiangshaoqing of RCI

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