China Will Invest 5 Tln Yuan in Renewable Energy

Judging from China’s 12th Five-Year Plan goals, China will invest more than 5 trillion Yuan, or US$1.57 trillion, in the development of renewable energy, said Xu Huaqing, Director of Center for Energy at Energy Research Institute of China’s National Development and Reform Commission, on November 30, 2011.

Xu made this statement while meeting with journalists during the ongoing UN Climate Change Conference in Durban, South Africa.

In the 12th Five-Year Plan (2011-2015) for China's economic and social development, China declares to reduce carbon dioxide emissions per unit of GDP by 40 to 45 percent from the 2005 level by 2020.

What’s more, it pledges to increase the proportion of non-fossil fuels, in China's primary energy consumption from 8.3 percent in 2010 to 11.4 percent by 2015, and 15 percent by 2020. The non-fossil fuels include nuclear energy, wind or water generated energy, and solar power.

These targets are parts of the government efforts to push its economy to a sustainable growth as the current model, relying heavy on massive consumption of fossil energy, has caused pollution and depletion of resources.

In recent years, China has been the country that invests the most and achieves the best in renewable energy in the world. And the 12th Five-Year Plan period will continue to be a golden time for the development of renewable energy development in China, said XU.

The Chinese government has adopted four channels for the investments in renewable energy, including special funds, funds, subsidies and rewards, said Xu.

However, the renewable energy also faces challenges both internationally and domestically, said Xu.

Due to the international financial crisis, the overseas demand has shrunk. In the meantime, the aids that developed countries provided to developing countries have greatly diminished.

The challenges also include land resources utility, financing, development fruits sharing between urban and rural residents, and ecological protection along with the development of renewable energy.

But thank to the forceful guarantee of the Renewable Energy Law and other concrete measures, the renewable energy will continue to thrive in China, said Xu.

China amended its Renewable Energy Law on December 26, 2009. The amendments require the state grid companies to purchase all power produced by renewable energy sources.