China: Renewable Energy Law
The law designates renewable technologies as the prefered area for energy development and research. It requires power grid operators to purchase resources from registered renewable energy producers. The law also offers financial incentives, such as a national fund to foster renewable energy development, and discounted lending and tax preferences for renewable energy projects. It also includes a renewable portfolio standard. It sets up the guidlines for assisting the renewable energy industries, setting technical standards for renewable energy electric power, technologyand products, incorporating knowledge about renewable technologies into educational curricula, encouraging construction of renewable power generation facilities, efficient buildings, and for rural electrification. Finally, it provides economic incentives: setting up a rural energy development fund to support R&D, construction, surveys and equipment production, authorizing the provision of preferential loans with subsidized interest, and tax benefits.
Date Implemented: 2006
Status: In Force; Mandatory
Targets: Aims to increase the usage of solar and wind power in China’s total energy consumption to 10% in the next 5 years (from 1%). Further targets to be determined and released to public. This law will increase small hydro-power capacity from 31,000 megawatts to 70,000 to 80,000 megawatts by 2020. Wind power capacity is expected to increase to 20,000 megawatts from 560 megawatts, and biomass from 2,000 megawatts to 20,000 megawatts.
References: China Passes Renewable Energy Law http://www.renewableenergyaccess.com/rea/news/story?id=23531; Renewable Energy Law - People’s Republic of China;
Renewable Energy and Energy Efficiency Partnership (REEEP) http://www.renewableenergyaccess.com/assets/download/ChinaRELaw_05.doc http://fpc.org.uk/fsblob/448.pdf