Page 198 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
with plans to expand the grid. Essentially, more turbines the east might be difficult, given the preponderance
were built than the country had the capacity to connect. of coal plants, a lack of strong winds and a scarcity of
This issue has already been addressed in part by the undeveloped land (Hernández).
Chinese government. Perhaps the most complex issue is
what is technically termed “curtailment” — this is when The potential of wind power in China, however,
wind power is available, but grid operators choose not to is significant. A 2016 MIT (Massachusetts Institute of
dispatch it, effectively wasting it. Much of this problem Technology) study said that wind power could – if
is connected to China’s lingering dependence on coal- certain adjustments were made – supply 26 percent
fired power plants. Coal is still a priority in the northern of China’s “projected electricity demand” by the year
parts of the country—where wind power has the greatest 2030 (Frangoul, China and U.S.). Energy generated by
potential (Harvey). Still, China installed a total of 23 wind power in the northern Chinese region exceeded
gigawatts of wind energy in 2016, nearly half the total 54 a record 10 million kilowatts by May 2017. The Inner
gigawatts that was brought online around the world, and Mongolia Power (Group) Co., Ltd. reported that the 154
continues to expand its lead over its nearest competitors, wind farms in the area generated 16,036 megawatts or
the United States and Germany (Hill, China Remains). 25 percent of total installed capacity. During the same
period, electricity production generated by wind farms
More than 92,000 wind turbines have been built was 46.6 billion kWh or 19.3 percent of the overall total in
across the country, capable of generating 145 gigawatts China. Wind power has also reduced 4,170 metric tons of
of electricity, nearly double the capacity the United smoke dust, 21,800 tons of sulfur dioxide and 1,950 tons
States. One out of every three turbines in the world is of nitrogen oxides by replacing fossil fuel alternatives,
now in China, and the government is adding them at a local government figures highlighted (Meng, Wind of
rate of more than one per hour. Chinese officials have Change). Global Wind Energy Council Secretary General
described the challenges facing the wind sector as Steve Sawyer said, “We are well into a period of disruptive
growing pains, and say investments in renewable energy change, moving away from power systems centered on a
will pay off in the long run. The costs of wind projects are few large, polluting plants towards markets increasingly
falling rapidly with advances in technology and more dominated by a range of widely distributed renewable
efficient construction, making them more competitive energy sources.”Wind energy is becoming an increasingly
with plants powered by fossil fuels like coal and natural important source of power. “Overall, we have a lot of
gas (Hernández). confidence in the wind power market going forward, as
the technology continues to improve, prices continue
Analysts said that China’s success would depend to go down and the call for clean, renewable power to
on its ability to overcome both political and practical reduce emissions, clean our air and create new jobs and
obstacles, including resistance to renewable energy new industries only gets stronger with each passing year,”
from local governments and a lack of turbines near Sawyer added (Frangoul, China Continues).
major cities. “This is partly a political fight,” said Paolo
Frankl, Head of the Renewable Energy Division at the Solar Power
International Energy Agency. “Still, it’s a very, very
robust and solid trajectory.” Gansu now has some of China’s growing dominance in solar power has
the highest rates of underutilization in the wind sector had a huge effect on the global market. According to
in China. A Greenpeace activist in Beijing who studies the Gigawatts Solar Institute at George Washington
climate change and energy issues, Yan Jing said, “It’s University, Chinese manufacturers dramatically cranked
hard for new energy companies to take a slice from up production of solar panels, driven by an estimated $42
traditional players.” Yan said even if more transmission billion in government-subsidized loans between 2010
lines were constructed, the government would have and 2012. The flood of Chinese panels was one of the main
trouble persuading businesses along China’s heavily reasons why world prices dramatically dropped by 80
developed eastern coast to buy electricity from percent between 2008 and 2013. The U.S. accused China
faraway provinces. “The authorities failed to consider of flooding the market and the Commerce Department
the demand factor, namely, ‘How can we get closer to started imposing steep tariffs on Chinese-made solar
buyers?’” she said. “There should be more development panels in 2012 in a bid to protect American producers. The
of clean energy in eastern parts of China so electricity U.S. informed the World Trade Organization in 2017 that
can be absorbed locally.” But building wind farms in it might impose tariffs on imports of solar panels from
198
with plans to expand the grid. Essentially, more turbines the east might be difficult, given the preponderance
were built than the country had the capacity to connect. of coal plants, a lack of strong winds and a scarcity of
This issue has already been addressed in part by the undeveloped land (Hernández).
Chinese government. Perhaps the most complex issue is
what is technically termed “curtailment” — this is when The potential of wind power in China, however,
wind power is available, but grid operators choose not to is significant. A 2016 MIT (Massachusetts Institute of
dispatch it, effectively wasting it. Much of this problem Technology) study said that wind power could – if
is connected to China’s lingering dependence on coal- certain adjustments were made – supply 26 percent
fired power plants. Coal is still a priority in the northern of China’s “projected electricity demand” by the year
parts of the country—where wind power has the greatest 2030 (Frangoul, China and U.S.). Energy generated by
potential (Harvey). Still, China installed a total of 23 wind power in the northern Chinese region exceeded
gigawatts of wind energy in 2016, nearly half the total 54 a record 10 million kilowatts by May 2017. The Inner
gigawatts that was brought online around the world, and Mongolia Power (Group) Co., Ltd. reported that the 154
continues to expand its lead over its nearest competitors, wind farms in the area generated 16,036 megawatts or
the United States and Germany (Hill, China Remains). 25 percent of total installed capacity. During the same
period, electricity production generated by wind farms
More than 92,000 wind turbines have been built was 46.6 billion kWh or 19.3 percent of the overall total in
across the country, capable of generating 145 gigawatts China. Wind power has also reduced 4,170 metric tons of
of electricity, nearly double the capacity the United smoke dust, 21,800 tons of sulfur dioxide and 1,950 tons
States. One out of every three turbines in the world is of nitrogen oxides by replacing fossil fuel alternatives,
now in China, and the government is adding them at a local government figures highlighted (Meng, Wind of
rate of more than one per hour. Chinese officials have Change). Global Wind Energy Council Secretary General
described the challenges facing the wind sector as Steve Sawyer said, “We are well into a period of disruptive
growing pains, and say investments in renewable energy change, moving away from power systems centered on a
will pay off in the long run. The costs of wind projects are few large, polluting plants towards markets increasingly
falling rapidly with advances in technology and more dominated by a range of widely distributed renewable
efficient construction, making them more competitive energy sources.”Wind energy is becoming an increasingly
with plants powered by fossil fuels like coal and natural important source of power. “Overall, we have a lot of
gas (Hernández). confidence in the wind power market going forward, as
the technology continues to improve, prices continue
Analysts said that China’s success would depend to go down and the call for clean, renewable power to
on its ability to overcome both political and practical reduce emissions, clean our air and create new jobs and
obstacles, including resistance to renewable energy new industries only gets stronger with each passing year,”
from local governments and a lack of turbines near Sawyer added (Frangoul, China Continues).
major cities. “This is partly a political fight,” said Paolo
Frankl, Head of the Renewable Energy Division at the Solar Power
International Energy Agency. “Still, it’s a very, very
robust and solid trajectory.” Gansu now has some of China’s growing dominance in solar power has
the highest rates of underutilization in the wind sector had a huge effect on the global market. According to
in China. A Greenpeace activist in Beijing who studies the Gigawatts Solar Institute at George Washington
climate change and energy issues, Yan Jing said, “It’s University, Chinese manufacturers dramatically cranked
hard for new energy companies to take a slice from up production of solar panels, driven by an estimated $42
traditional players.” Yan said even if more transmission billion in government-subsidized loans between 2010
lines were constructed, the government would have and 2012. The flood of Chinese panels was one of the main
trouble persuading businesses along China’s heavily reasons why world prices dramatically dropped by 80
developed eastern coast to buy electricity from percent between 2008 and 2013. The U.S. accused China
faraway provinces. “The authorities failed to consider of flooding the market and the Commerce Department
the demand factor, namely, ‘How can we get closer to started imposing steep tariffs on Chinese-made solar
buyers?’” she said. “There should be more development panels in 2012 in a bid to protect American producers. The
of clean energy in eastern parts of China so electricity U.S. informed the World Trade Organization in 2017 that
can be absorbed locally.” But building wind farms in it might impose tariffs on imports of solar panels from
198
