China’s new “Law on Renewable Resources,” implemented on Jan. 1, is expected to open up a huge market in the country for renewable solar energy and boost development of its solar power industry.
The law, approved by the National People’s Congress Standing Committee in February 2005, encourages “all units and persons” to use solar energy-based generation systems.
Sources from the State Development and Reform Commission even say the Chinese government is working on “preferential policies” to ease energy supply bottlenecks and to make renewable energy a major substitute for coal, oil, and natural gas.
Good day sunshine
Economic observers predict that renewable energy will account for about 10% of China’s total energy consumption by 2020. But they have not spelled out just what portion of that figure will come from solar energy. They do say that solar energy is developing rapidly worldwide, and suggest that China’s market share of solar-based products-now about 1% of the world’s total-is destined to grow. Currently, they say, more than 500,000 solar power generation systems have been installed in China’s rural areas and in some remote places, bringing electricity to some 500,000 families.
But such views were barely mentioned in a document, released by the Chinese government in late-December, which claims a stable, economical, and clean state energy supply system will be established in China.
The document, “Decision of the State Council on Implementing the Interim Regulations on Promoting the Adjustment of Industrial Structure,” puts an emphasis on the energy issue.
To meet the demand growth for electricity, the government will “give priority to the development of high-efficiency coal power, develop hydropower on an environment-friendly basis, and develop nuclear power in an active manner.”
Oil still rules
The document, which barely mentions the sun, says China will encourage the exploitation and utilization of new, clean energies to gradually replace petroleum, and accelerate the scaled production of clean coal.
The document also calls for a comprehensive utilization of such mining resources as gangue, coalbed methane, and mine water, and encourages the joint operation of the coal mining and electric power generation sectors.
Hedging its bets, though, the document said the government will also increase input in the exploitation of petroleum and natural gas, and expand overseas cooperation in this field in the coming years.
Meanwhile, oil apparently will still hold sway as suggested by CSC Nanjing Tanker Corp., a unit of China’s largest river shipping company, China Changjiang National Shipping Corp., which has signed an order for 16 new tankers.
Why? China imported 130 million tons of crude oil and 30 million tons of refined oil in 2005, most of which were shipped by foreign vessels due to a shortage of domestic oil shipping capacity. ✦