Not just for show

There is no shortage of stunning low-carbon showcase projects in the NDRC's pilot zones, although most of them are running at a loss or are wholly dependent on government subsidies.

Observers are worried such expensive centerpieces might end up as "image projects", which merely gain approval from higher authorities without genuinely helping to transform the economy.

Jiang Kejun, a researcher with Energy Research Institute affiliated with the NDRC, said bluntly that "low-carbon" tags given to many cities are false, as officials there usually look to single projects without having an overarching consideration of how smart urban planning can reduce carbon emissions.

Equipped with the cutting edge of energy-saving technologies, one demonstration building in Qianjiang Economic Development Zone in Hangzhou costs 80 million yuan (US$12 million) to build.

The zone also boasts a 64-million-yuan rooftop solar energy system that can generate 1.82 million kilowatts of electricity every year.

Despite subsidies from the Hangzhou government, though, generation of each kW still costs between 1.6 yuan and 2 yuan, while the feed-in tariff set by the power grid is only 1.43 yuan - meaning the more power it produces, the more money it losses.

Shenzhen, which is in Guangdong but is also a separate pilot city, already has 50 electric taxis on its roads. The cars' batteries take roughly one hour to recharge and can last as much as 300 kilometers. However, the owner of the recharging station is providing a free service during the trial stage and was reluctant to talk about the costs.

"The foundation of new industries remains weak and key technology has not yet been refined," said Wu Changhua with The Climate Group, who warned that it could take 10 years for the new technologies to mature and be accepted by the market, thereby driving down prices.

Some cities that have invested heavily on infrastructure to promote a low-carbon way of life are also struggling to create business opportunities aimed at raising funds to support the operations.

Hangzhou government has spent about 300 million yuan on establishing a system with 50,000 bicycles in 2,000 rental spots to reduce the reliance on cars. As rental is cheap, officials have attempted to make money by auction advertisement space on the bicycles. However, enterprises have so far been put off by the high prices.

Wu Changhua urged pilot areas not to be too ambitious in the early stages of green development.

"Plans should be developed according to the real situation of each region, including resources, knowledge and capabilities, and should not be too aggressive," she added.

(China Daily November 11, 2010)