China is considered as the world’s highest emitter of greenhouse gasses. The country’s objective is to reduce carbon-di-oxide emissions by 40-45% from 2005 levels by 2020 and increase the use of renewable energies from around 9% of its current total energy mix, to 15% by 2020.
The main aim of Renewable energy sector in China is to increase the amounts of government attention and investment before 2020. The government has so far invested in renewable energy sector with $51 billion in 2011. China’s increasing demand for electricity, the need to reduce its dependency on coal for energy production, and the need to reduce its greenhouse gas emissions, are the three key drivers in this sector, according to new report issued by Asia Pacific-focused consultancy firm named Solidiance.
China’s dependency on coal and peat is the main cause for the highest emission of greenhouse gasses in the world. In 2010, China was responsible for emitting more than 8300 million metric tons of carbon dioxide, nearly 3000 million metric tons more than the USA and more than 6500 million metric tons compared to India, as per the study.
There is a growth of around 80% in China’s investment in renewable’s since 2004, which indicates that in the near future, the country would become one of the global leaders in developing renewable energies and will also act as a major support structure for the continuous growth and development of the country’s economy, according to the study.
The study also say that, the challenges in the key sectors such as hydro power, wind power, solar and biofuels must be first addressed, as the renewable energies is important for the growth in China.
There was a continuous increase of hydro power installations of hydro power globally in the period up to 2011, with China accounting for 22% of the total global installed hydro power capacity. Challenges such as the long development periods, associated social displacement and environmental concerns, and the increasing difficulty in accessing potential development sites say that the China’s investment in hydro power will decline after 2020.
The wind energy market in China is amounting to 25% of total global installed wind capacity and is taking the opportunity to mature with the key industry trends that include consolidation and internationalisation.
In China, wind energy alone is expected to reach 195GW in 2020 as compared to 62GW of installed capacity in 2011, and also accounts for the majority of the country’s predicted total renewable capacity of 274 GW, as per the report given by GlobalData.
Currently, China is the fastest growing solar PV market in the world, with the government targeting total installed capacity to reach 21 GW by 2015 and 50 GW by 2020. The growth of Chinese solar PV sector depends on domestic development, new technology R&D, and cost reduction, as per the analysis made by Solidiance.
Biomass and biofuels is considered as one of the future key growth area for renewable’s in China. But the newly established area of renewable resource is still not noted, mainly because of very poor infrastructures that limit the sector’s short term growth. The growth of Biomass and biofuels sector depends on second generation biofuels; ethanol and energy produced from feed stock sources.