China Comment

Energy, Environment, and Economy

China’s Coal (Part II): Alternatives

Coal accounts for over 70% of China’ energy mix, whereas in the United States, coal is 44% of the energy mix. Below I analyze several reasons why China has such high coal requirements as a percentage of its energy supply and I attempt to explain why China’s coal requirements may remain high for a long time to come.

Just how fast are China’s coal demands rising? According to a study, “offsetting one year of recent coal demand growth of 200 million tonnes would require 107 billion cubic meters of natural gas (compared to 2007 growth of 13 BCM), 48 GW of nuclear (compared to 2007 growth of 2 GW), or 86 GW of hydropower capacity (compared to 2007 growth of 16 GW).” (Lawrence Berkeley National Lab. Study)

(See Part One of this series on China’s Coal and a chart comparing China’s energy use to the United States’ Here).

China has trouble diversifying energy supply sources because it lacks significant natural gas supplies, it is starting from a very low base in installed nuclear power plants, and because of other renewable energies’ technical limitations.

1. China’s Lack of Extensive Natural Gas Supplies

Natural gas provides over 20% of US energy, but China has much less natural gas reserves than are available in the US. The US has 79 trillion cubic meters estimated natural gas reserves, whereas China has 22 trillion cubic meters. (EIA). Natural gas only accounts for 3.5% of China’s total energy supply and it is unlikely that Chinese natural gas utilization will increase to anywhere near the levels that it is used in the United States.

Natural gas generally burns cleaner than coal, so use of natural gas is desirable from both a carbon and a sulfur emission point-of-view. “[I]n 2011, China [hopes to]… raise the ratio of natural gas in its total primary energy consumption by 1 to 2 percentage points. . . . Using natural gas … as opposed to coal, could reduce carbon dioxide emissions by 130 million tons a year and sulfur dioxide emissions by 1.44 million tons a year.”( China’s LNG.)

Still, much of China’s natural gas has a high sulfur content, which makes it expensive to produce in a usable, or clean form. However, unconventional gas reservoirs may increase China’s future output. Not all unconventional resources, however, are included in estimations of producible reserves (such as those given above). “[L]ow permeable gas, coal bed methane, and shale gas are each respectively estimated at 100 trillion cubic meters, 30 trillion cubic meters, and 100 trillion cubic meters.” (China Coal Resource, Sept 2009)

Even fast-increasing development of unconventional gas resources will only marginally affect coal’s dominance of China’s energy supply. A 2005 Oxford study determined that “the share of natural gas in the primary energy supply is predicted to rise no higher than 10 per cent by 2020, even in the most optimistic scenario in which natural gas use is significantly promoted.”

Realizing that its domestic resources may not be enough to guarantee sufficient natural gas supply, China has also planned natural gas pipelines to surrounding countries to import gas. China also constructed several LNG (liquid natural gas) terminals (The Guardian, Watts, 2006; see also p3 Oxford Energy Study for a map of planned LNG terminals as of 2005).

(A more in-depth study on the future of China’s natural gas industry is deferred until another article).

2. China’s Coming Nuclear Additions

Nuclear accounts for 20% of US capacity. China has plans to increase their nuclear capacity from ~1.3% of China’s current energy mix to 5% by 2020. Despite plans to construct the most nuclear plants of any country in the upcoming ten years (and subsequently demanding a great deal of uranium), China will find it difficult to quickly displace coal’s dominance of China’s energy supply.

The United States has over 104 nuclear reactors, built over a thirty-year period. Prior to 2002, China had less than three operating nuclear power plants. Today, China has 11 nuclear facilities and plans to construct at least 20 in the next 10 years. But even with a significant building program, it may not be in China’s energy security interest to rapidly increase its percentage of nuclear power. If a massive nuclear-buildout occurs, large quantities of uranium will need to be imported, and engineers will need to be rapidly trained. A more gradual increase in nuclear capacity may be in China’s best interest rather than a break-neck development speed.

3. China’s On-line Wind Capacity And Renewables

Wind and renewables have steadily increased as a percentage of China’s energy mix, rising from 0.06% of China’s energy mix to 1.3% from 2006 to 2008. Additionally, hydroelectric power capacity has grown significantly in the past three years. “In 2008, the country added 20.1 GWe of hydro capacity” (World Nuclear Ass.)

There are limits to how much any country can depend on renewables, however. Engineers I have spoken with claim that an energy grid can only handle a maximum of around 25% of its power from wind. Wind is a variable source and needs scaling units (other energy sources that can turn on when wind is not blowing) to balance wind’s output. Wind’s average capacity utilization factor is only around 31%. In comparison, Combined Cycle Gas, Nuclear, and Coal steam turbines all rated capacity factors above 40%, according to the Nuclear Energy Institute.

Given current technology, at the most, wind could only account for about a fourth of China’s energy mix- and subsequent developments in battery storage or natural gas scaling units are required to make wind economically viable and reliable. (See China’s Dirty Wind for more on wind and scaling). (See “Capturing the Wind” by the House Research Organization for the Texas House of Representatives for an estimate of  the maximum amount of wind that can be integrated onto the grid using existing technology without radical alterations– 15GW; as of 2007 Texas already had nearly 5GW of wind online- which was only about 2% of the state’s energy supply.)

4. Hydroelectric Power

Hydroelectric power has been met with some controversy in China. Although there are environmental concerns, property takings concerns, and rainfall has declined, hydroelectric has a lot to offer China. Over 37 GW of hydroelectric capacity was added in China between 2004 and 2007. An additional 20.1 GW of capacity was added in 2008. China’s total potential hydroelectric rating is one of the highest in the world- at 694 GW. However, only around 171.5 GW of China’s capacity is utilized. China hopes to reach 320 GW of installed hydroelectric capacity by 2020 (Huang, 1658).

Of all potential alternatives to Coal, hydroelectric power will likely remain the number two energy supply source. Hydroelectric power has also done a great deal to reduce the amount of ash, sulfur dioxide pollution, and carbon dioxide emissions.


Although China’s coal consumption is double the number two producer’s amount, China seems to have little other viable options to displace coal as an electricity source in the near term.

China is embarking on ambitious wind and nuclear development programs, and it has built pipelines for natural gas, but these programs take time to develop, and there are drawbacks to all alternative energy sources. Even massive hydroelectric expansions have resulted in environmental and land-relocation controversy (See articles on the Nu River Project and the Three Gorges Dam; specifically see the book China’s Water Warriors by Andrew Mertha).

Coal will likely continue to provide a significant portion of China’s energy for the next 20 years– simply because the alternatives are not practical enough to scale-up large enough to replace coal’s necessary position in China’s energy mix.

These next few years will bring large challenges for China’s leaders as they try to balance energy security, energy demands, resource depletion and environmental concerns. With luck, China’s leadership will use constructive and creative solutions to manage and confront these growing concerns.

Recommended Reading

The Lawrence Berkeley Lab. Government Sponsored Study of the Chinese Coal Industry (July 2009)

Andrew Mertha. China’s Water Warriors. 2008.

24 November, 2009 Posted by | China Energy, China Future | , , , , , | 2 Comments

China’s Dirty Wind

News in the WSJ on Sept 28th reported that China’s wind farms, which as I have noted before* , have some connectivity problems in joining the electrical grid. That information is nothing new, but the rest of the article’s discussion piqued my interest.

Apparently, the Chinese government is planning to ensure ample supplies of wind (even when it is not blowing) by balancing the load not with fast-starting natural gas plants, as some US wind farms utilize to manage the load, but with slow-starting and arguably heavy-polluting coal plants.

What is not common knowledge is that producing power is not as easy as connecting a wind farm into a preexisting grid. Wind power fluctuates and varies and sometimes needs to be shut down/curtailed if wind speeds exceed say 35 mph, or blow at less than around 5 mph. Too much or too little wind on the grid can cause power shortages. (A very basic explanation of load management and peaking is HERE). A news article on the problem of variable loads being matched with hydroelectric power is HERE.

According to NERC, which (under FERC’s supervision) can assess fines and create rules to ensure electricity reliability in the US, “Wind machines “ramp up” and trail off so fast that the grid is likely to need new generators fired by natural gas that can start up or shut down faster than the ones in service now.” (NYT).**

When I read the WSJ article, I could not initially believe what it was saying. For a country run by engineers and geologists, one would think that China would be well aware of the difficulties in cycling up and down different types of power. Natural gas is a good match for wind power because it is easy to cycle up quickly. Coal, however, takes longer to cycle up. For coal to be an efficient match to mitigate the variability of wind power, coal plants will need to be on constantly.

Considering that coal is a relatively cheap source of energy, wouldn’t it be cheaper for Chinese power plants only to invest in coal and run the plants at 100% capacity rather than constructing wind plants while running coal power plants at 50% and then scaling up their use when needed? By matching coal with wind, most potential environmental gains are negated since coal’s emissions constantly flutter into the atmosphere. Still, it could be said that some reduction in carbon output is better than none at all. But the matching of coal to wind certainly drives wind power’s costs up– for China’s economic detriment and only marginal environmental gains. (It could be that China is hoping the build-out of wind power helps them when the Copenhagen environmental carbon market targets are achieved; or that natural gas can be matched to the wind farms after certain pipelines are completed.)***

Why is China using coal instead of natural gas? China simply does not have very much natural gas. (EIA) Natural gas only accounted for 3% of China’s total energy mix in 2006, compared to nearly 70% provided by coal. (EIA). And of that, only 29% was used for electric power or residential and commercial uses as of 2005. (page 4, Yang Dengwei; 32% was used for industrial fuel) This should change, however, due to pipelines that China is constructing from bordering countries that have natural gas surpluses. And of course, Liquid Natural Gas technology also raises the amount of imports that China can receive. By 2011, China hopes to “raise the ratio of natural gas in its total primary energy consumption by 1 to 2 percentage points.” (China Daily). China’s natural gas consumption rose from 50 billion cubic meters in 2005 to 76 billion cubic meters in 2008, to an estimated 86 billion cubic meters in 2009. (China Daily).

I suspect that China may eventually decide to go down the route of battery storage of excess wind power in order to better manage the loads. But battery storage technology is still a bit expensive, “costing roughly $3 million per megawatt plus millions for start-up and testing.” (Scientific American).

When China’s excess natural gas pipeline capacity comes online, the country may also begin greater utilization of natural gas to manage wind’s load, but natural gas supplies will still be dwarfed by China’s coal– and natural gas prices may rise again like they did in Summer 2008. If a majority of China’s natural gas supplies are imported (as appears likely), in order to preserve energy security, Beijing may want to discourage generators from using natural gas to provide safety from wind’s variability. Hydroelectric power could also be paired to wind power. However, hydroelectric power is mostly concentrated in China’s south, whereas much of China’s wind resources are  located in the North (Inner Mongolia, Xinjiang, etc.). Perhaps nuclear could balance the wind grid like coal currently does, but most new nuclear plants are to be built on the coast and near China’s south.

It will be interesting to examine how successfully China marries coal to wind generation and what sort of effect this will have on China’s future electricity pricing.


*In my older post I perhaps noted China’s wind connectivity problems a bit too harshly given that the US also has some grid connection problems regarding wind since even more so than in China, a great deal of US wind capacity is far from its citizens and will require long transmission lines to provide wind. This transmission problem helped lead to the demise of part of the Pickens Plan for a massive wind farm in Texas.

**At the very least, “[b]atteries or flywheels, both of which can store energy, may be needed to smooth out the production of wind farms, which stop producing power when the wind stops, or when the wind goes faster than the turbines can handle.” (NYT) [which leads to patents like THIS.]

*** Interesting fact. Due to the need for wind to be matched to more reliable sources of power, wind farms are not 0 carbon emission investments. One study reported that;  “Increasing the capacity of wind energy on the Austin Energy grid causes increased usage of these less efficient peaking units. In other words, as more wind energy is generated, there is a drop in the overall efficiency of fossil fuel based energy on the grid, resulting in greater carbon emissions per unit of energy from the nonrenewable sources. . . For purchased wind energy from Austin Energy, with a 20 percent capacity of wind energy, each megawatthour of electricity would increase the emission from the fossil fuel sources by 60 lb of CO2 . While this CO2 emissions rate is lower than the current UT plant emissions of 694 lb/MWh, it is also not zero. Instead of the purchased wind energy being 100 percent carbonfree, the reserve offsets result in 91 percent carbonfree energy” (Is Wind Energy Hot Air?, UT)

5 October, 2009 Posted by | China Energy | , , , , , | 3 Comments

Xinjiang’s Energy Resources

Resources buried under Xinjiang account for over 20% of China’s future petroleum reserves, over 40% of its coal reserves, and Xinjiang has potential for large uranium deposits. Recent terrorist attacks and instability in Xinjiang makes it worthwhile to examine just what the Chinese have of interest in the region. Below, I explore the importance of Xinjiang’s security to Beijing’s energy policy. (Examination of a political point-of-view calculation will have to wait until later.)

An Overview of Xinjiang’s Energy Resources

“Xinjiang’s annual oil and gas equivalent output… ranks the first in the country… The third national resources evaluation shows that: Xinjiang’s total oil and natural gas resource reserves exceeded 30 billion tons… Recently, Xinjiang has been producing 75,000 tons of crude oil daily, occupying 14.4 percent of the country’s daily crude oil output. In 2007, Xinjiang’s oil and gas equivalent reached 44.94 million tons” which was the highest production value of all Chinese provinces” (People’s Daily).

“Xinjiang produced 26.4 million tons of crude oil and 21.2 billion cubic meters of gas last year, or 43.3 million tons of oil equivalent, representing a rise of 13.6 percent from 2006. [Note, these estimates differ slightly from People’s Daily’s estimates] As a result, Xinjiang, with estimated reserves of 20.8 billion tons of oil and 10.8 trillion cu m of gas, has been designated as a strategic area to replace Heilongjiang [in the Northeast] in China’s oil industry” (Stephen Blank, Jamestown).

“[B]eneath Xinjiang’s dusty soil and mountainous steppes lies buried 40% of China’s coal reserves. Equally abundant and far more precious to the central government are oil and natural gas deposits that total the equivalent of about 30 billion tons of oil and represent one-fourth to one-third of China’s total petroleum reserves” (Peter Navarro).

* A short, four page report on Xinjiang’s energy potential by the WSI (World Security Institute).

Xinjiang’s Coal

“It is predicted that during the 11th Five-Year Program period (2006-10), in the Zhundong area of eastern Xinjiang, the total installed capacity to be constructed – based on coal resources there – will reach 8.8 million kilowatts, and that of coal-to-methanol, coal-to-olefin, and coal-to-oil projects will total 7.6 million, 1.96 million and 3 million tons respectively. The aforesaid projects are expected to generate sales revenue of some 55 billion yuan (US$7 billion) after going into production… In 2006, raw-coal output in Xinjiang increased by some 3.6 million tons over 2005” (Asia Times).

“In accordance with the region’s 11th Five-Year Program, by 2010 Xinjiang’s raw-coal output is expected to exceed 100 million tons, and its installed capacity to top 10 million kilowatts” (Asia Times). 

Xinjiang’s Natural Gas

“The Tarin Basin alone has proven reserves of over one billion tons of crude and 59 billion cubic meters of natural gas” (Martin Andrew, Jamestown Foundation).

Xinjiang’s Wind

Xinjiang is also home to the Dabancheng wind farm, one of the largest in China, and has potential for much more wind power expansion. And “The Ala Mountain Pass region… will have an installed base of wind farms totaling 1 GW” by 2015 (Renewable Energy World).

“(Although significant power-grid transmission to the East would be a logistical problem to overcome.) “Currently, the total wind power capacity installed in Xinjiang accounts for 20% of nationwide capacity installed… The total capacity is estimated to reach 43.8 million kW, which can generate 1 00 billion kWh of electric power and is nine times of the current electric power generated in Xinjiang” (World Security Institute).

Energy Security and Transportation

* “The 2008 People’s Republic of China (PRC) White Paper on Diplomacy placed energy security as a major centerpiece of the country’s foreign policy…The White Paper specifically emphasized that China is currently the world’s second largest producer and consumer of energy, and therefore an indispensable part of the global energy market, and is increasingly playing a prominent role in ensuring global energy security” (Russell Hsiao, Jamestown).

* “Central Asia can serve as a transshipment area for Middle East oil should war ever break out over Taiwan or China’s various claims for oil reserves in the South China Seas” (Peter Navarro). Pipelines through Xinjiang connect China with Turkmenistan, Kazakhstan (2010), and also run through Uzbekistan. It is vital to China’s energy security that these energy pipelines are secured.

* Crude Oil reserve bases are also located in Xinjiang, which will be useful if coastal oil reserves in Zhejiang or Fujian come under fire due to a Taiwan conflict.

* Xinjiang’s vast resources can help China wean itself off of foreign countries’ energy. If developed properly, and if China restrains its energy consumption, the country can continue to possess a modicum of energy independence.


Security of Xinjiang’s resources is central to Beijing’s strategy of becoming a developed nation. Without Xinjiang’s resources, the Chinese would depend even more on the vagaries of the Malacca Strait for transshipment of energy. Russia’s new pipeline into China will help alleviate some of China’s dependence on pipelines through Xinjiang, should said pipelines become plagued by sabotaguge (which is unlikely). Additionally, more energy diversification is planned with expansions of China into Myanmar energy.

Still, China’s domestic energy hub for the future is Xinjiang. Its supply of energy to the rest of the country is disproportionate to its population and its wealth. Because Xinjiang is key, China will continue to be harsh in its crackdowns against splittists, terrorists, and overly zealous religion adherents.

27 August, 2008 Posted by | China Energy, China Future | , , , , , , , , , , | 1 Comment

China Energy Efficiency

China faces energy shortages. There has been power rationing in Shanghai, Hubei, and elsewhere this year. “China has forecast a power shortfall of 10 gigawatts for the summer, about 1.4 percent of installed capacity” (Reuters). Concurrently while boosting capacity, the country is struggling to achieve its stated goal of a 20% increase in energy efficiency from 2005 through 2010.

Steps have been taken to ensure that China’s energy efficiency goals are reached, but ultimately, it appears the Chinese will fall short of realizing their goal. Still, in striving, the Chinese government may realize that placing price caps on energy producers can actually harm the environment. As a result, China may come to allow market forces to dictate energy pricing- to a point. By doing this, China could finally succeed in chasing inefficient factories to other countries.

Energy Goals

In 2005, China drafted a plan to increase energy efficiency per unit of economic output 10% by 2010. “In 2006, the first year of the plan, the country’s reduction in energy intensity… was a mere 1.23%. For the first half of 2007, this figure was close to 3%… but that’s still short of the 4% reduction needed each year from 2006 to 2010 to achieve the goal” (Forbes).

Energy Consumption

“In 2005, China’s energy consumption per unit of GDP was… more than three times the level of the United States, more than five times that of Germany and eight times that of Japan” (Xinhua); specifically, “the energy intensity of China in 2005… was 35,766 British thermal units per U.S. dollar. In the U.S., the Btu/dollar ratio was 9,113. In the U.K. and Japan, the figures were even lower, 6,145 and 4,519 respectively” (Forbes).

Interestingly, unlike the US, which utilizes energy on a massive scale- about 7.794 kgoe/person as of 2003, China’s consumption per capital energy consumption is still only 1.1 kgoe/capita in 2003, which rose from 0.946 kgoe/capita in 2000, and 0.791/capita in 1990.

Also, “in 2005, China’s per capita commercial energy consumption was about 1.7 Mtce, only two thirds of the world average” (People’s Daily).

Since China currently uses such low amounts of energy per capita despite being vastly energy inefficient, it will be crucial for China to modernize its energy efficiency before more people become affluent and begin using larger amounts of electricity.

By starting from such a low base in per-capita energy usage, China has the potential to easily build state-of-the-art power transmission grids, to dictate strict regulations, and to build a culture based on energy conservation first, rather than reverse-engineering its energy regulations and energy consumption culture like other countries need to do.

kgoekilograms oil equivalent

mtcemetric tons carbon equivalent

Energy Expansion

China’s power generation capacity in 2002 of 356.6 GW was 9.6% of the world’s total power generation capacity, second only to the United States’ capacity of 979.6 GW. By 2005, China’s power generation capacity had risen to 508 GW (statistics from HERE). In 2006, China added over 114 GW of power generating capacity, and is continuing to expand generously.

If China is to satisfy its energy demands, it will need to increase energy efficiency. Otherwise, world energy prices, which recently saw oil rise to over $140/barrel, could check Chinese economic growth.

“Green” construction alone will not ameliorate China’s energy situation, since even construction of over 30 efficient nuclear power plants in the next 10-20 years will only add 60 GW of power. Wind and Solar electricity will account for much smaller increases in Chinese energy capacity at a little over 30 GW of power by 2020.

Considering China’s ambitious goal to improve energy efficiency, it appears the Government does realize the challenge. But what reprecussions might happen as the country struggles to meet this challenge?

Why Price Caps Harm the Environment

By putting price caps on how much energy can sell for and concurrently subsidising SinoPec and other energy companies, China encourages inefficient, polluting companies to remain in business or delay upgrading technologies. When subsidies and price caps are eliminated, prices rise and factory producers have to survive in a more Darwinistic competition model where the most efficient companies are rewarded for infrastructure investments.

Instead, partially due to the price caps, factories both efficient and inefficient have to endure power rationing.

Of course, too-low-set price controls sometimes encourage producers to produce less power. Or producers may decide to do things on the cheap and produce dirty coal instead of less environmentally destructive, but more expensive options (NYT discusses high-tech coal plants).

Results: Higher Quality Companies, Freer Energy?

It appears that regardless of its ultimate decision on price controls, China will maintain some sort of government intervention so its poor will be able to afford energy. Considering the widening GINI coefficient of wealth inequality in China, such supports will be necessary. And price assistance will be especially needed in rural regions, since urban income still outpaces rural income by at least 3.28:1.

Future government intervention, however, may be more in the form of direct subsidies to people rather than price caps on companies. 

Freeing energy markets will allow the market to incentivize energy efficiency, and continue the trend of driving away inefficient industries. For China to most efficiently continue its energy capacity expansions in an era of high oil prices and expensive energy, it makes sense that the country will move to price liberalization. When might this happen? To take a wild guess, I’ll predict it’ll happen whenever oil hits $200/barrel. Barring war or shortages due to a major conflict such as a Iran-US war, I don’t see that happening until at least 2012, so the move toward Chinese energy price liberalization might take some time– but since China’s power demands are so great, said liberalization will eventually happen.


* Official figures on energy efficiency increases in the first half of 2008. (2.88%).

* Erica Downs of Brookings is even more pessimistic about China’s eventual move toward energy efficiency and modernization, arguing that “China’s new energy administration is unlikely to substantially improve energy governance.”

* China Daily had evidence of a perhaps laudable, but perhaps disturbingly only stop-gap fix for solving China’s energy efficiency and “green” problems. By ranking 60% of cadres’ career evaluations on energy efficiency and pollution solutions, China’s government pursues a bureaucratic incentivistic solution to what appears to be mostly a market problem. 

* More reading on China’s progress toward greater environmental and energy efficiency care can be found at China Environmental Law.

19 August, 2008 Posted by | China Economy, China Energy, China Environment/Health | , , , , , | Leave a comment

Wind Power In China

 Long known for its polluting and dirty coal industry, did you know that China also has fast-developing and promising wind and nuclear industries? It needs to, especially since it became a net oil importer in the last ten years and is importing increasing amounts of coal to feed its economic expansion.

This article focuses on China’s Wind Industry.

“China intends to spend an estimated $200 billion on renewable energy over the next 15 years.” And as of April 2008, “the [Chinese] government has set a target for renewable energy to account for 10 percent of the country’s energy consumption by 2010 and 15 percent by 2020.” This may be a reasonable goal, given that China met its goal for installed wind-power generating capacity three years ahead of schedule.

In February 2008 a report was released that stated China’s wind power generation rose 95.2% to 5.6 million Kw hours in 2007. “The government plans to increase its wind power equipment to a combined installed capacity of 10 million kw by 2015, and to 30 million kw by 2020.”

To encourage further development; “The Chinese government has begun refunding value-added tax (VAT) and import duties on core wind power turbine parts and materials in a move to promote the development of clean energy.”

And feverish work has already begun:

In March, China announced the “creation of a high-level body to integrate its energy management, supervision and policies, functions that are currently dispersed among many government agencies.” This should allow for more streamlined development of the wind and renewables sector.

“China National Offshore Oil Corp. (CNOOC) plans to build the world’s biggest offshore wind farm… near Weihai City in eastern Shandong Province.” The whole project which will result in 1.1-2.5 million megawatt hours may take up to 10 years to complete.

“By 2010, China Power New Energy… plans to put into operation 1,500 megawatts (MW) of renewable energy capacity… It also plans to have another 1,500 MW under construction and a further 1,500 MW in the pipeline… That would be 50 percent higher than the company’s original target of having 1,000 MW of renewable energy capacity on stream, 1,000 MW under construction and another 1,000 MW in the pipeline… The company now had installed renewable energy capacity of 980 MW,”

Why the focus on wind? According to a 2007 research industry report by QYResearch “Wind power is the most popular renewable energy in China, compared to the solar energy industry; as its cost is much lower. Chinese wind power price is about 0.5-0.6RMB/KW.h while the traditional power price is about 0.2-0.3RMB/KW.h, but solar power price is about 8 times that of wind power price, therefore wind power is very welcome in China. ”

For a little perspective, The Earth Policy Institute has a lot of good data on the amount of wind capacity installed worldwide. As of 2007 Germany leads the world with over 22,247 MW, the US is second with 16,818 (and led the world in 2007 installed capacity of over 5,000 MW), Spain is third with 15,145 MW, then India with 8,000 MW, China with 6,050 MW, and Denmark with 3,125 MW.

China added 3,449 MW of wind energy in 2008. Each year, China has added greater and greater amounts of wind energy capacity. With the current positive regulatory environment, increasing production capabilities, and the proliferation of environmentally-based trade fairs showcasing cutting-edge technology, China is demonstrating that it wants to move to the forefront of clean energy technology development. As quoted at the Green Leap Forward; “The National Reform and Development Commission was considering almost tripling wind energy targets for 2020, from 30 GW to as much as 100 GW. To put that number in context, realize that current installed wind capacity is about 94 GW…globally.”

Considering China’s rapid progress thus far in wind energy development; it appears that within the next three to ten years China might very likely become one of the world’s major leaders in wind renewable energy.

Other Interesting Tidbits
 * Junfeng Li at the WorldWatch Institute provides a nice analysis and chart listing of the major wind power producers in China.
* The Green Leap Forward had a good article on China’s Wind Power.
* China Wind Power Report: 2007
* China Brief on China’s new energy regulatory commission.
* Renewable and Alternative Energy News on China.

16 June, 2008 Posted by | China Energy, China Future, China Technology | , , , , , , , | 1 Comment