A general description of China Renewable Energy Resources. Done in Jan 2010. For more info about Noether, please check www.noetherassociates.com

1. An Overview of China Renewable Energy Resources

2. Table of Contents
Storage and Usage of Renewable Energy in China P1
Technology Development & Commercialization P2
Renewable Energy in China’s Energy Structure P3
Renewable Energy in China’s Power Industry P4
Government Support P5
Investment Opportunity Open for Foreign Capital P6
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3. Storage and Usage of Renewable Energy in China
China is rich in wind power, hydropower, solar energy, and biomass energy. Current usage of renewable energy can be
contributed most to power generation.
Wind Power Hydropower Biomass Energy Geothermal Solar Energy
Potential Usable Installed Capacity1: Installed Capacity1: 540 Caloric Value1: Installed Capacity1: 6 Caloric Value2:
Resource 1000 mm kw mm kw 500 mm ton mm kw 2,300,000 mm ton
Standard Coal Standard Coal
Caloric Value1: 3300
mm ton Standard
Coal
Usage Areas Power Generation Power Generation Power Generation Power Generation Solar energy power
generating
Bio-fuel Direct Use of Hot
Water Solar water heater
Earth Source Heat Solar building
Pump
Source: 1. Middle- and Long-Term Renewable Energy Plan; 2. Report on the Development of China's Wind Power Generation Industry, 2009
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4. Technology Development & Commercialization
China’s ability in R&D and facility production are generally weak in all sub-industries beside hydropower generation,
solar energy, and marsh gas. Regarding wind power, only generators with small capacity could be domestically
produced currently.
# of Commercialized # of Demonstration & # of Projects under
Projects Promotion Projects R&D
Solar Energy 6 1 8 18 2
Wind Power 2 3 16 2
Hydropower 2 4
Biomass Energy 1 1 6 5
Geothermal Energy 5 4
Ocean Energy 1 1
Maturely Commercialized Projects Domestic R&D
Almost Commercialized Project Foreign Technology may be Imported
Commercializing Projects
Source: Catalogue for the Guidance of Renewable Energy Industry Development
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5. Renewable Energy in China’s Energy Structure
Renewable energy accounts for less than 10% of the entire energy structure in China. In its 11th “5 year plan”, China’s
target is to have the amount of renewable energy use to reach 219mm tons of standard coal in 2010, among which
hydropower is a large sub-industry that will develop.
Structure of Energy Consumption in China
Equal to 1 million tons of Standard Coal
3,000
2,700
2,500 2,247
Other
2,000 Resources
6%
1,500 1,386
1,000
500 Hydropower
94%
86 141 194.4
0
2000 2005 2010(E)
Renewable Resource Non-renewable resource
Source: 11th Five Year Energy Plan
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6. Renewable Energy in China’s Power Industry
In 2008, renewable energy accounted for 16.82% of the power industry in China. Hydropower has been put into large
scale of usage, and is producing power with a lower price than thermal power, while wind power is still facing
technology and management challenges. Solar power and bio power are not largely involved in the market yet,
although they have been put into usage in some independent regions.
Structure of Power Industry Wind Power Industry Chain and Problems Faced
in China, 2008
Technology
Weak domestic R&D force
Development
Nuclear
Power
Equipment Over investment risk
2.00% Manufacture Dispersed equipment vendors
Thermal Hydropwer
Power 16.45%
81.18% Site Selection Site selection and resource estimations not accurate
Wind
Power Project Power generated not stable
0.37% Management Current projects are losing money
Total=3.42 Trillion kwhr
Power Generation locations are dispersed
Delivering National power system is not ready for new power delivery
End User Higher price than paralleled thermal power
Source: Report on the Development of China's Wind Power Generation Industry, 2009
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7. Government Support
The Important targets of the 11th “5 year plan” include hydropower, wind power, bio-energy, and solar power,
among which those are given clear financial support are diagramed below. The development and construction of new
rural energy projects is also emphasized.
Government Golden Sun Demonstration Project
Financial Support
Implementation time 2009--2011
Total subsidies (power) 500--640 MW
Total subsidies (capital) RMB 11--14 billion
Replacement Building Heating
Power Generation
of Oil and Cooling
Bio-fuel Ethanol Solar Energy Solar Energy
Bio Diesel Geothermal Energy Wind Power Grid-connected photovoltaic power
generation could be reimbursed 50% of
the total investment
Independent photovoltaic power
generation systems in remote areas
without electricity could be reimbursed
Ocean Energy
70% of the total investment
Source: Interim Measures on Special Fund Management for Development of Renewable Energy
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8. Investment Opportunity Open for Foreign Capital
Foreign capital is encouraged in new energy industry in China. Projects highlighted in blue also fit the target of 11th “5 year plan”, thus
could be better supported politically by the government.
Key projects of the 11th “5 year plan” Encouraged New Energy Projects for Foreign Investment
Production of special equipment for manufacturing solar cells
Solar energy development and
Solar Energy Solar cells, Fuel cells
utilization
Production of solar air-conditioner, heating system, solar drying device
Bio-diesel
Production of biomass drying pyrolysis system and biomass gasifier
Bio Energy Bio-fuel Ethanol
Biomass energy technology development
Solid biomass briquette
Production of set equipment or critical equipment for new energy power
generation (Limited to joint venture, cooperation):
− photovoltaic power − wave power
− methane power − waste power
Biomass power generation in − above 1.5 MW wind power − tidal power
Agriculture and Forestry − geothermal power
Power
Methane power generation
Generation Construction and operation of new energy power generation, including:
Large Wind Turbine − solar energy − tidal energy
− wind energy − wave energy
− Biomass energy − magnetic energy
− geothermal energy
Construction and operation of hydroelectric-based power generation
New high-performance hydrogen storage materials
Hydrogen Production of hydrogen preparation and storage device and inspection system
Production of new energy engine
Source: Catalogue for the Guidance of Foreign Investment Industries (Amended in 2007) 11th Five Year Energy Plan
；
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