China's Renewable Energy Catches the Wind
On January 1, 2006, China's first renewable energy law came into effect, following the unveiling in November of the government's new energy strategy. Renewables are to play a major part, contributing 15 percent of China's primary energy consumption by 2020, up from 7 percent. The law brings fresh hope to renewable energy operators, making the renewables sector more economically attractive by offering economic incentives to developers and mandating requirements for power grids. CERA anticipates challenges in both implementing the law and developing a commercial renewables market. Effectively implemented, however, the new law and regulations promise a more dynamic renewables market that will assist China in meeting its long-term energy shortage and growing environmental challenge. Key goals are
* continued state-led investment in large hydropower projects
* wind power targeted to grow 30 percent per year to 2020
* installed capacity for small commercial hydro power plants to double by 2020
