Renewable Energy Key for China

1、insight# 2009-30mpd june 25, 2009 renewable energy: key for chinas economic recovery and sustainable development by jason dong keywords renewable energy, wind power, solar power, smart grid, green overview china is actively promoting the growth of the renewable energy industry. in 2008, the country

2、invested 15.6 billion usd in green energy, an increase of 18 percent from the previous year. in 2009, the chinese government is further increasing investments in this segment. a new energy industry stimulus package will be launched soon as part of a national effort to sup- “china has embraced the no

3、tion that renewable green energy technologies can play a key role in driving the countrys economic recovery and help create a more sustainable manufacturing industry.” port ten key industries. this means the chinese government will leverage policy support and fi- nancial subsidies to promote develop

4、ment in the renewable energy industry. more than 10 percent of the already announced four trillion usd stimu- lus package has been committed to this segment. smart grid most efforts are being focused on electric power production. yet, a senior official from chinas state grid recently said the countr

5、y is committed to building a smart grid by 2020. this undertaking will involve a total in- vestment of one trillion cny. the building a smart grid plan is being incorporated into the national agenda. in the face of the current global eco- nomic crisis, china has embraced the notion that renewable gr

6、een energy technologies can play a key role in driving the countrys economic recovery and help create a more sustainable manufacturing industry. wind and solar play leapfrog the renewable energy industry is receiving widespread financial and regu- latory support.key segments include wind, solar, and

7、 hydroelectric thought leaders for manufacturing & supply chain arc insights, page 2 power, as well as biofuels. china is working to increase the portion of energy generated using these cleaner, renewable sources to combat pollu- tion and reliance on energy imports.this process requires substantial

8、changes to the countrys energy infrastructure. for example, wind power capacity has grown the fastest over the past few years, helping china rank number two in the world for purchases of wind power-related equipment. china is aggressively increasing the scale of the wind power industry. furthermore,

9、 in an effort to be self-reliant, the country is making sure to build a comprehensive wind power industry chain. in 2008, chinas wind power generation capacity increased by 6.24 giga- watts to a total of 12.1 gigawatts.china estimates that its wind power capacity can maintain at least 20 percent gro

10、wth over the next few years. china is also a major supply source: china wind energy association base for polysilicon and other materials used in the production of photovoltaic cells. solar power capacity on the rise at present, china produces 2000mw with photovoltaic cells, and the pro- duction capa

11、city is approximate 4000 to 5000 mw. china is promoting its “golden sun program,” which provides financial incentives for building and operating solar power stations. increased domestic utilization of the solar panel manufacturing industrys output can help minimize the prob- lem of overcapacity whil

12、e increasing the role of solar power in chinas power production. the cost of solar power is expected to fall as technologi- cal breakthroughs become practical and the scale of production increases. the chinese governments renewable energy stimulus program and falling prices for upstream raw material

13、s and photovoltaic cells are also contribut- ing to the growth of the local solar power industry. leapfrogging old targets based on the current pace of growth, china is poised to easily surpass pre- vious targets for renewable energy. the original target for wind power was 30 gigawatts by 2020. poli

14、cy makers are considering tripling this to 100 gi- gawatts. china is also considering tripling the target for solar power to 9 2009 arc 3 allied drive dedham, ma 02026 usa 781-471-1000 arc arc insights, page 3 gigawatts by 2020, which only has an installed capacity of 120 megawatts. the new target w

15、ould challenge the solar power industry to increase by 75 times within 10 years. if new targets for renewable energy are approved, china hopes that this segment will generate enough power to supply be- tween 15 to 20 percent of the countrys total power consumption, surpassing the level in europe. be

16、nefits for suppliers the development of the renewable energy industry is having a major im- pact on suppliers of automation hardware and solutions. for example, the rapid growth of the wind power industry is directly driving increasing “the rapid growth of the wind power industry is directly driving

17、 increasing sales of windmill control systems, motion control systems, human- machine interface (hmi) hardware and sales of windmill control systems, motion control systems, human-machine interface (hmi) hard- ware and software, and converters. ongoing construction of wind farms requires scada sys-

18、tems, power transmission and distribution systems software, and converters.and energy management systems.at the same time, this growth is stimulating growth in the mar- kets for windmill equipment, related raw materials, components, and ma- chined parts, all of which require lots of application of c

19、ontrols and drives systems. last word growth in these renewable power industries is also driving upstream raw material production and downstream equipment manufacturing and as- sembly, all of which require large-scale investments in process and discrete manufacturing automation projects. the same green considerations which are responsible for much of the growth in renewable energy are