Adjusted targets

In line with the rapid growth in new energy industries, China has already adjusted the targets for some sectors. For instance, the country made a plan in 2005 to increase its nuclear power capacity to 40 gW in 2020, when it would account for 4 percent of the country's total power capacity.

But with the quick growth of the industry, the target has been raised to between 70 and 80 gW, according to officials with the National Energy Administration (NEA).

China now has 11 nuclear power reactors in operation. These reactors have a total capacity of 9.1 gW and account for around 1 percent of the nation's total power capacity.

There are three nuclear power bases in the country -- at Qinshan in Zhejiang Province, Daya Bay in Guangdong Province, and Tianwan in Jiangsu Province.

All nuclear power reactors under construction now are in China's coastal area. In addition to that, many inland provinces have also embarked on plans to develop nuclear projects.

More funds needed

According to a recent report by the World Bank, China needs an additional investment of US$64 billion annually over the next two decades to implement an energy-smart growth strategy.

Such investment should be aimed at making the power and transport sectors more efficient and developing renewable energy, according to the bank. The new energy business has become another growth industry for many companies in China. An increasing number have made plans to enter the lucrative nuclear power market.

Two companies in the country, China National Nuclear Corp and China Guangdong Nuclear Power Group, used to monopolize the construction and operation of nuclear power stations. But today China's five major coal-fired power generation companies entered the sector.

Many domestic energy giants have outlined their development path on new energy. China National Petroleum Corp (CNPC), the country's largest oil and gas producer, said the company would speed up development of new energies including coalbed methane, fuel ethanol and oil sands, aiming to set its annual oil-equivalent production capacity at 1.25 million tons this year.

The company will further increase capacity to 6 million tons of oil equivalent in 2015, according to Zhou Mingchun, chief financial officer of PetroChina Co, the listed arm of CNPC.

China Petrochemical Corp (Sinopec), the country's second largest oil company, has also said the company would speed up development of new energies including coalbed methane and geothermal energy. Sinopec has set plans to develop coalbed methane in northern China and shale gas in southern parts of the country, the company said in its 2009 corporate social responsibility report.

However, some analysts are worried that too much involvement of large state-owned companies in new energy industries may create a monopoly situation.

(China Daily September 13, 2010)