1、1On Chinas Green Energy Development Strategy?C An Interview with Ren Dongming, Deputy Director of the Center for Renewable Energy Development of the Energy Research Institute, National Development and Reform Commission In its Medium- and Long-Term Development Plan for Renewable Energy, drawn up in 2
2、007, China set itself a goal: increase the percentage of renewable energy in its energy consumption to 10 percent by the year 2010, and then 15 percent by 2020. Four percent of that would be in the form of power generated from wind, solar, biomass and other renewable energy sources. In 2008 hydropow
3、er generation alone made up 16 percent of the total amount of the nations energy usage, and one percent came from new energies. When hydropower alone surpasses the target for all other forms of renewable energy, 12 years ahead of schedule, how does that impact Chinas new energy sector and our perspe
4、ctive on it? With this question in mind, China Today interviewed Ren Dongming, deputy director of the Center for Renewable Energy 2Development of the Energy Research Institute, National Development and Reform Commission. Q: The current development of renewable energy in China does not seem to confor
5、m with projections made in the 2007 Energy Plan. Whats your opinion on this disparity? A: In China we include in the category of renewable energy power generated from hydro, wind, solar, biomass, geothermal and ocean tidal energies. Today the majority of Chinas power needs are supplied through coal
6、and hydropower. In the 2007 Plan China anticipated having 15 percent of its energy consumption met with renewable resources by 2020. These were further broken down as, 30 million kW from wind, 30 million kW from biomass and 1.8 million kW from solar photovoltaic (SPV). But China was cautious in maki
7、ng that forecast. Take the mature and resource-rich hydropower sector as an example. China built its first hydropower station in Yunnan Province in 1914, and now runs over 230 large and medium-sized stations that produce power from water at a lower cost than coal. In areas with the necessary water r
8、esources and sound hydropower generation facilities, the price gap can be as wide as RMB 0.1 3per kilowatt-hour (price for coal power averages RMB 0.39 per kilowatt-hour). Today hydropower accounts for about one sixth of Chinas overall power supply. However, Chinas larger hydropower projects find th
9、emselves increasingly embroiled in environmental disputes. Many environmentalists argue that dams interrupt the flow of rivers, and therefore weaken biodiversity. As the environmental consequences of these constructions are only revealed after many years, or decades, people on all sides of the debat
10、e find it difficult to provide solid evidence to support their views, leaving their battle at a stalemate. These issues have made the government more prudent about its hydropower development. The Ministry of Environmental Protection has intensified the vetting process for hydropower projects before
11、signing off on them, resulting in a decline in the number of projects initiated in recent years. Another consideration is that construction of a reservoir requires the relocation of people in the area, a sensitive social issue. The reservations the Chinese government has toward planning new hydropow
12、er developments make it appear they lack a clear strategy for development in the sector. Q: Does the lower percentage of new energy sources in 4Chinas power consumption imply there is difficulty generating electricity with these new resources? A: In 2008 Chinas production capacity for photovoltaic c
13、ells rose to 30 percent of the worlds total, for the first time beating Germany to the top slot. And for two years in succession China-made photovoltaic cells snagged the largest share of the global market in 2007 and 2008, but 98 percent of those cells were sold abroad. For solar technology applica
14、tions, the most common domestic usage is for heating water; the annual production is 15 million square meters. The production of SPV power is more complicated. The core technologies employed in the manufacturing of polysilicon materials, crucial components of SPV equipment, are still in the grip of
15、foreign enterprises, particularly those based in Germany and Japan. Chinese manufacturers stay at the lower end of the industrial hierarchy, doing little more than processing. Without a technical advantage in the field, China faces exorbitant costs in the generation of SPV power, which translates to
16、 higher prices for consumers ?C RMB 3 to 4 per kilowatt-hour, ten times that of coal power. SPV power was first used in China in the 1970s, for satellites. China lagged behind world levels in both technology 5and output in the following decades. It is only in the past five years that major leaps hav
17、e been made in the realm, spurred on by international demand and a growing desire for new energy at home. But the technical gap remains wide between China and some international counterparts. Globally the solar power industry is still wrestling with hurdles ranging across the high costs (due to tech
18、nical difficulties), low efficiency and unstable supplies. It remains to be seen if solutions to these problems can be found in the near future. In contrast to SPVs, wind power has entered into wide commercial use in China, seeing exponential growth since 2006. With advances in technology and increa
19、ses in the scale of applications, its costs are falling. Now on-grid pricing for electricity from turbines is about RMB 0.7, merely double that for coal power. According to the current growth rates, Chinas wind power generation capacities will far exceed the projected 30 million kW by 2020. The shor
20、tcoming of wind power lies in its lower efficiency levels when compared with hydro, coal and nuclear power. Its availability and density is largely dependent on season and climate, which impose safety risks on the power grid. The state has stipulated that the power grids must accept all the 6electri
21、city generated from renewable energy. Walking that talk will have to wait until technical limitations are resolved. Another hindrance is that most wind farms are located in sparsely populated areas, like prairies and deserts, well out of the way of the power grids they must connect to. Q: Nuclear po
22、wer is another controversial green energy. Chinas nuclear power sector became stagnant a few years ago. Why did it suddenly reemerge in the 2007 Plan? A: China started planning for nuclear power as early as the 1970s. Today there are three nuclear power bases in China ?C Qinshan in Zhejiang Province
23、, Dayawan in Guangdong Province and Tianwan in Jiangsu Province. Last year was a landmark for nuclear power when the largest number of generation units in China were sanctioned and launched. That year saw four new projects, comprising 14 one-million-kW-class generating units, being approved, hoistin
24、g Chinas total number of nuclear facilities to eight. Nuclear power represents a paltry two percent of Chinas power supply at present, but features a sharp competitive edge in price, which now stands between RMB 0.393 and 0.46, almost on par with coal power, and even lower in regions with existing n
25、uclear power plants such as Guangdong and Zhejiang. Nuclear 7power production has the merits of high efficiency and stability, but requires a greater initial investment, almost two to three times that of coal-fired power plants. Rigid location requirements have to be met, concerning local population
26、s, regional industrial and agricultural development and facilities for the disposal and transportation of toxic waste products. It usually takes five years to select an appropriate site and complete a feasibility study. Another major obstacle to nuclear energy production is the scarcity of uranium.
27、To meet these needs China must import over 50 percent of the required uranium materials. Q: What measures can be taken to overcome the impediments to Chinas development of green energy? A: The government now offers subsidies to new energy producers to entice technical innovations in the field, which
28、 is vital to bringing down the costs. In the Netherlands citizens are encouraged to voluntarily draw a part of their monthly consumption of electricity from green resources. A similar experiment has been put into practice in Shanghai, but so far has largely received a cool reception from the public.
29、 The concept and desire for green energy practices has yet to be cultivated among the Chinese people. 8In September 2009 Premier Wen Jiabao made statements on several occasions warning of excesses in SPV manufacturing. Macro-control of industries by the government is justified, but I believe peoples
30、 enthusiasm in developing new energy should be encouraged. Seeking profits is common in the early stages of every fledgling industry. Competition can act as a catalyst for technical advancement and as a filter for weaker players. Macro-controls set by the government should focus on the distribution
31、of the energy sector. Some experts hold the opinion that there should be a grading of electricity prices across different regions of the country. The overall distribution of energy resources is unbalanced in China due to geographic conditions. Wind power, for instance, has a larger base in northeast
32、ern, northern, northwestern and eastern coastal areas, and hydropower is in the southern river regions. A price classification scheme can facilitate regional planning and management for the power industry, effectively fending off production excesses. As the development of new energy requires massive
33、 investments, excessive production capacity amounts to a waste of funds. Global Lessons in Green 9Development The U.S.: Going out on a Limb for Solar, Wind and Bio Energy Nevada Solar One, the worlds second largest concentrated solar power plant, began operation in 2007, followed by several smaller
34、facilities. In August 2009 the Department of Defense started on its large solar energy project ?C a 500-megawatt installation at the Fort Irwin military base in the Mojave Desert in California, which is claimed to be the first step in what the army calls a far-reaching strategy to secure energy supp
35、lies to military installations. In 2008 the U.S. added 8.38 GW (one GW is 1 billion watts) to its wind generation capacity, increasing the amount to 25.1 GW, one fifth of the worlds total, topping all other nations. Last February the Department of Energy earmarked US $93 million from the American Re
36、covery and Reinvestment Act to support further development of wind energy in the U.S. At present the U.S. annually produces 1.3 billion tons of biomaterials, which can be converted to at least 100 billion gallons of fuel, tantamount to half of the annual volume of gasoline and diesel 10consumed in t
37、he U.S. U.K.: Leading in Offshore Wind Energy The United Kingdom built its first offshore wind farm in 2000. Now it is the worlds largest producer of offshore wind power, in terms of both the number of such projects and their installed capacities. Electricity generated from turbines powers as many a
38、s 1.5 million British homes. And that from offshore wind accounts for 20 percent of all electricity generated in the country. The U.K. plans to launch additional offshore wind projects upping its capacity to 25 billion watts in the coming decade. This means the total amount of electricity from offsh
39、ore wind in the country is expected to reach 33 billion watts by the year 2020, half of the global aggregate. Japan: Bright with Solar Energy The Japanese government has long been subsidizing the installation of solar-power generators in homes and funding the development of solar technologies. In 2008 it commenced
