Beijing Calls for $265B Investment in Renewable Energy
Shares in renewable energy companies edged up on
China's stock exchanges Wednesday following the release
of a national plan for reducing fossil fuel-based
energy consumption, according to the country's official
Xinhua News Agency.
China's energy czar, Chen Deming, said on Tuesday
that China needs $265 billion in investments to meet
its renewable energy goals by 2020, according to the
English-language China Daily.
The private sector, including state-owned companies,
will likely foot most of the bill to reach China's
goal of generating 15 percent of its energy needs
from renewable sources within 13 years, according
to the National Development and Reform Commission's
(NRDC) plan. Beijing and local governments will contribute
only about one-fifth of that total investment, Mr.
Mr. Chen promised tax incentives and subsidies to help companies switch to more sustainable forms of energy, the China Daily said. But Mr. Chen also sketched out specific requirements, such as renewable energy investment quotas for large, state-owned enterprises and the installation of solar power equipment in real estate development projects, according to the China Daily.
China is roughly halfway to its renewable energy
goal, official sources said. It currently generates
eight percent of its energy from renewable sources,
which include hydropower. Critics, however, charge
that large-scale hydropower projects are likely to
make up a good proportion of China's long-term renewable
mix, despite their damaging impacts on the environment.
In the near future, China expects its hydropower capacity to dwarf that of wind, biomass, or solar power. By 2020, China aims to build 300 million kilowatts of installed hydropower capacity, compared with 30 million kilowatts capacity for wind and 1.8 million kilowatts capacity for solar, Xinhua News Agency reported.
The NRDC plan also calls for developing biogas as
a main fuel source for China's 300 million farmers
and using renewable energy to connect remote regions
to the grid.
On Wednesday Wuhan-based solar thermal equipment
maker Linuo Solar Energy Company's stock jumped 10
percent while Ronghua Industrial Group and Xiangtan
Electric Manufacturing Group rose about five percent
and two percent respectively, Xinhua reported.