China takes major steps in renewable power generation
China’s National Energy Administration (NEA) recently announced major investments in renewable power generation in the coming years, the Guardian reports. The NEA expects the installed renewable power capacity including wind, hydro, solar and nuclear power to contribute to about half of new electricity generation by 2020. This again is a clear sign that world’s largest energy market continues to shift away from coal power towards cleaner fuels.
The agency did not disclose any details on where the funds, which equate to about 70bn dollar each year, will be spent. Yet, the National Development and Reform Commission, the country’s economic planner, said in its own five-year plan about 100bn dollar will go towards wind farms and 72,5bn to hydro power.
As we reported earlier, at the moment China is world’s biggest investor in renewable energy, including wind energy projects. As a result, the Chinese market offers enormous opportunities for wind turbine suppliers, offshore solution providers and engineering firms, like Oceanteam Solutions and KCI.
According to Haico Halbesma, CEO at Oceanteam, this is only the beginning as China still faces huge challenges phasing out coal power. “The country is really focusing on renewable power generation, but nevertheless renewables will still only account for just 15% of overall energy consumption by 2020”, Halbesma says. “More than half of the nation’s installed power capacity will still be fuelled by coal over the same period. In short, the importance of the Chinese renewable energy market in the coming decades can hardly be overestimated.”