China renewable energy sector, a mixed blessings
The outlook seems to be bittersweet for the renewable energy sector in China in 2009 and 2010.
The financial crisis may have a positive impact on the solar photovoltaic (PV) industry for seeking financing, but the growth tendency for the renewable energy sector will not change, industry insiders say.
In a list of the subsidies for renewable energy projects, released by the National Development and Reform Commission last week, said more than 2 billion yuan of subsidies would be allocated to 148 renewable energy power generation projects from October 2007 to June 2008.
This list includes 102 wind power programs, 43 biomass power programs, and three solar energy power projects with overall installed capacity and on-grid electricity of 5.7 million kilowatt and 7.7 billion kilowatt hours.
In addition, 12 provincial power grid enterprises are allowed to introduce an additional electricity fee from their counterparts in other provinces through quota trading to make up fund shortages. The transaction volume will amount to 873 million yuan.
This is the third time that the NDRC has released the subsidy notice since 2006, pushing electricity grid enterprises to pay the subsidies on time, said Shi Jingli, a researcher of Energy Research Institute.
China introduced the Renewable Energy Law starting from January 1, 2006 and issued pricing mechanism on renewable energy power generation later to prompt the development of renewable energy sector, yet alternative power generating enterprises such as straw-fired power plant are always complaining the subsidies do not arrive on time.
The financial crisis may affect the solar PV manufacturing industry because most of the enterprises in the field are depending on the overseas markets, and the share prices of these overseas listing companies has dropped dramatically, many over 80%, but the domestic renewable energy market outlook will still be bright, said Li Junfeng, deputy director of ERI under the NDRC.
China’s wind power industry is largely due to the government’s strong push for sustainable development. According to the China Wind Power Report 2008 issued last week, the goal that China set to expand its wind power generation capacity to 10 GW by 2010 will likely to be reached by the end of this year.
Government action and private initiatives are pushing China’s wind power market into a prominent position with major foreign companies also already present or looking to enter the market.
Netherlands-based clean energy company Econcern announced last week that it will partner with China National Offshore Oil Corp and Sinohydro to invest 863 million euros to build four Chinese wind farms.
For biofuel products in China, facing the challenges of declining oil prices during the financial crisis will still be fine because demestic prices of refined petroleum products are still controlled by the government, running off the international crude oil prices.
While big biofuel producers can come through the bad times, smaller players will face the challenge due to the credit freeze.
Tags: Energy, power
This was what I needed to know. I love this kind of inside info.
Renewable Energy got into more focuse in this decade because everyone does not want to depend on Oil.~`: