China has passed a renewable energy law, setting the stage for the country to transform world renewable energy markets.
The Renewable Energy Promotion Law, which takes effect next year, requires power grid operators to purchase resources from registered renewable energy producers.
It also encourages oil distribution companies to sell biological liquid fuel, and offers financial incentives, such as a national fund to foster renewable energy development, and tax preferences for renewable energy projects.
The government plans for renewable energy sources to contribute to 10 percent of the total by 2020.
At the Bonn conference on renewable energy last June, China pledged to increase its installed renewable energy generating capacity to about 60 gigawatts by 2010, about 10 percent of total power capacity (from 3% today).
China relies on coal for about 75 percent of its energy and coal-fired plants account for most of its pollution. China is now the world’s second biggest producer of carbon dioxide accounting for a seventh of the global total. Only the United States is worse, according to the International Energy Agency.
Last year, the market for wind energy in China grew by 35% even without the new law. China has huge potential for solar, wave, tidal and biomass power and there is huge commercial interest in developing renewables there. Combined with energy efficiency improvements, NGOs believe China could meet all its energy needs from renewable energy and efficiency alone.
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