Page 188 - 2017 White Paper
P. 188
7 White Paper on the Business Environment in China
integrity of the more than 87,000 dams in China, Deputy the “Golden Sun” subsidy, which was announced in 2009
Minister of Water Resources Jiao Yong went on record and includes a 50 percent subsidy of all grid-connected
saying that “roughly 37,000 dams across the country are in sola investments and 70 percent of off-grid photovoltaic
a dangerous state” (Roberts 2008). investments (China Briefing 2011a). The nation reportedly
hopes to surpass Germany as the world’s largest solar
Despite these concerns, plans exist to expand installed energy market by 2013 (Blythe 2011).
hydropower capacity by an additional 140 million kilowatts
by 2015 and 450 million kilowatts by 2030 (Stanway 2011). Inefficient transmission is said to be the biggest
challenge to fully exploiting the benefits of “green” power
Work on these plans has already begun; Dezan Shira generation, however (China Daily 2009c). One project
reports that “Between the second half of 2010 and the first to address this concern is the State Grid Corporation of
quarter of 2011, 10 new major hydropower stations were China’s plan to build a network of ultra-high-voltage (UHV)
approved, with 50 gigawatts of total installed capacity transmission lines by 2020 (Wan 2010b). The first part of
and investments of more than 200 billion yuan”, and that this grid, an AC line linking Shanxi province to Jingmen city
likely areas for foreign investment include hydropower in Hubei province, was completed in 2009 (Gov.cn. 2011).
equipment manufacture, operational support services
and technology upgrades (China Briefing 2011a). A January 2011 Reuters report on the State Grid
Corporation’s plans for UHV transmission lines indicated
As of late 2013, “hydropower capacity [was] targeted that the company was “alone earmarking more than 500
to grow about 6 percent a year to reach 290 gigawatts by billion yuan ($76 billion) to build 40,000 km of lines by
2015” (Wong 2013). 2015” (Bai and Chen 2011b); the State Grid Corporation
itself reports that it plans to complete a total of 10 UHV
Solar power joins hydroelectric in being a “green” projects by 2015 and 15 by 2020, with a budgeted
source of power generation, and there has been emphasis investment of approximately 1.6 trillion yuan (significantly
on developing solar power with similar enthusiasm. A more than was earlier reported by Reuters) (Gov.cn. 2011).
China Daily report in December 2009 trumpeted the
“official statistics” showing that China consumes more “Green” generation technology is also receiving
hydroelectric- and solar-generated electricity than government support, including the requirement that
any other nation, although the report did not provide all electricity generated by renewable methods must be
a reference to the statistics themselves and does not purchased by the (state-owned) grid companies, and
discuss per-capita consumption (China Daily 2009c). that the purchase of the same is to be supervised by the
A Xinhua article from two months prior reported that State Council Energy Department and the State Power
“more than 6,000 tones of polycrystalline silicon (a key Regulatory Agency, with the caveat that those parties, in
material in producing solar power) and 2 million kw of addition to the State Council Finance Department, are to
solar photovoltaic cells” were produced in 2008 (China “determine the proportion of renewable energy power
Daily 2009b). generation to the overall generating capacity for a certain
period” (China Daily 2009c).
The Wall Street Journal cites an estimate that the PRC
will account for 13 percent of global demand for solar Despite such regulatory benefits for renewable
generation equipment by 2015, up from a current 7 generation, coal will likely continue to play the most
percent in 2011 (Denning 2011). important role in power generation in the country: in
2009 Asian Development Bank official Ashok Bhargava
A goal of 20 gigawatts of installed solar capacity by 2020 noted that “no matter how much renewable or nuclear is
had been published in mid-2010 (Zhu 2010); meanwhile, in the mix, coal will remain the dominant power source”
the 2015 target is 10 gigawatts (China Breifing 2011a). (Bradsher 2009).
Reuters reports that by the end of 2010 there existed 900
megawatts of capacity in the country (The New York Times Coal’s dominance will likely continue for the coming
2011). 40 to 50 years, Ni Weidou of the Chinese Academy of
Engineering told China Daily a year later (Xinhua 2010).
To encourage the construction of more solar power Coal consumption, however, is expected to draw from 70
plants, the PRC government initiated a program called percent of total energy consumption in 2009 to 63 percent
188
integrity of the more than 87,000 dams in China, Deputy the “Golden Sun” subsidy, which was announced in 2009
Minister of Water Resources Jiao Yong went on record and includes a 50 percent subsidy of all grid-connected
saying that “roughly 37,000 dams across the country are in sola investments and 70 percent of off-grid photovoltaic
a dangerous state” (Roberts 2008). investments (China Briefing 2011a). The nation reportedly
hopes to surpass Germany as the world’s largest solar
Despite these concerns, plans exist to expand installed energy market by 2013 (Blythe 2011).
hydropower capacity by an additional 140 million kilowatts
by 2015 and 450 million kilowatts by 2030 (Stanway 2011). Inefficient transmission is said to be the biggest
challenge to fully exploiting the benefits of “green” power
Work on these plans has already begun; Dezan Shira generation, however (China Daily 2009c). One project
reports that “Between the second half of 2010 and the first to address this concern is the State Grid Corporation of
quarter of 2011, 10 new major hydropower stations were China’s plan to build a network of ultra-high-voltage (UHV)
approved, with 50 gigawatts of total installed capacity transmission lines by 2020 (Wan 2010b). The first part of
and investments of more than 200 billion yuan”, and that this grid, an AC line linking Shanxi province to Jingmen city
likely areas for foreign investment include hydropower in Hubei province, was completed in 2009 (Gov.cn. 2011).
equipment manufacture, operational support services
and technology upgrades (China Briefing 2011a). A January 2011 Reuters report on the State Grid
Corporation’s plans for UHV transmission lines indicated
As of late 2013, “hydropower capacity [was] targeted that the company was “alone earmarking more than 500
to grow about 6 percent a year to reach 290 gigawatts by billion yuan ($76 billion) to build 40,000 km of lines by
2015” (Wong 2013). 2015” (Bai and Chen 2011b); the State Grid Corporation
itself reports that it plans to complete a total of 10 UHV
Solar power joins hydroelectric in being a “green” projects by 2015 and 15 by 2020, with a budgeted
source of power generation, and there has been emphasis investment of approximately 1.6 trillion yuan (significantly
on developing solar power with similar enthusiasm. A more than was earlier reported by Reuters) (Gov.cn. 2011).
China Daily report in December 2009 trumpeted the
“official statistics” showing that China consumes more “Green” generation technology is also receiving
hydroelectric- and solar-generated electricity than government support, including the requirement that
any other nation, although the report did not provide all electricity generated by renewable methods must be
a reference to the statistics themselves and does not purchased by the (state-owned) grid companies, and
discuss per-capita consumption (China Daily 2009c). that the purchase of the same is to be supervised by the
A Xinhua article from two months prior reported that State Council Energy Department and the State Power
“more than 6,000 tones of polycrystalline silicon (a key Regulatory Agency, with the caveat that those parties, in
material in producing solar power) and 2 million kw of addition to the State Council Finance Department, are to
solar photovoltaic cells” were produced in 2008 (China “determine the proportion of renewable energy power
Daily 2009b). generation to the overall generating capacity for a certain
period” (China Daily 2009c).
The Wall Street Journal cites an estimate that the PRC
will account for 13 percent of global demand for solar Despite such regulatory benefits for renewable
generation equipment by 2015, up from a current 7 generation, coal will likely continue to play the most
percent in 2011 (Denning 2011). important role in power generation in the country: in
2009 Asian Development Bank official Ashok Bhargava
A goal of 20 gigawatts of installed solar capacity by 2020 noted that “no matter how much renewable or nuclear is
had been published in mid-2010 (Zhu 2010); meanwhile, in the mix, coal will remain the dominant power source”
the 2015 target is 10 gigawatts (China Breifing 2011a). (Bradsher 2009).
Reuters reports that by the end of 2010 there existed 900
megawatts of capacity in the country (The New York Times Coal’s dominance will likely continue for the coming
2011). 40 to 50 years, Ni Weidou of the Chinese Academy of
Engineering told China Daily a year later (Xinhua 2010).
To encourage the construction of more solar power Coal consumption, however, is expected to draw from 70
plants, the PRC government initiated a program called percent of total energy consumption in 2009 to 63 percent
188
