The State Information Center in China was cited that a “newly developing energy industries” plan involving $739 billion in investment through 2020 has been approved by the National Development and Reform Commission and will be submitted to the State Council for approval.
Officials announced that such energy industries include nuclear, wind, solar and biomass energy, as well as clean coal, smart grid, distributed energy and new energy sources for vehicles. An agreement to close at least 10,000 megawatts of outdated coal-fuelled power capacity before October this year is already signed, a step towards reducing the current situation where coal still accounts for 70% of China’s primary energy sources. A domestic market for trading carbon emissions is also likely to be set up by 2014.
Wind power is an important energy source in the new energy mix because wind farms amortize comparatively quick and large parts of China are suitable for building big capacities of wind power. China’s installed wind power capacity has been doubling annually in the past four years to around 25 GW at the end of 2009, with the majority built in inland regions where wind power is rich but power demand is relatively small. In April it had been pointed out by Liu Qi, deputy head of the energy administration, that the largest constraint to large-scale wind power development is the lack of sufficient grid connection. Six months of research to focus on wind power planning, market development and power transmission were organized at the time.
The EU and China will continue their efforts to provide support for both Chinese and European energy sector key players, and its objective is to promote increased use of clean energy. Manuel Barroso and Zhang Guobao, head of China’s National Energy Administration agree on similar targets on clean energy. For the EU’s efforts to achieve its energy and climate change objectives it is necessary to form partnership with friends around the world. Important prospects for developing concrete projects within China and the European Union are feasible and beneficial in the future.
This year in May Chinese Premier Wen Jiabao also encouraged foreign investors to seek business opportunities in China’s economic reform. Zhang Guobao said at the time: “As of the end of 2009, China had introduced about 30,000 technological projects from the EU, among which wind, photovoltaic and nuclear power projects account for a rather big proportion,”
The “newly developing energy industries” plan will be submitted to the State Council for approval and will hopefully impact new projects and investment. There’s much movement going on right now and technologically all necessary adaptations for a new energy mix are already feasible. It’s time for courageous and bold implementation!