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December 28, 2009

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Law boosts renewable energy industry

CHINA'S top legislature adopted an amendment to the renewable energy law on Saturday that requires electricity grid companies to buy all the power produced by renewable energy generators.

The amendment aims to support the country's fledgling renewable energy sector.

It was approved by lawmakers after being heard the second time at a five-day meeting of the National People's Congress Standing Committee.

It says the State Council energy department, in conjunction with the state power regulatory agency and the State Council finance department, should "determine the proportion of renewable energy power generation to the overall generating capacity for a certain period."

Power enterprises refusing to buy power produced by renewable energy generators will be fined up to double the amount of the economic loss of the renewable energy company, it says.

Renewable energy includes non-fossil fuels such as wind and solar power, hydropower, biomass, geothermal and ocean energy.

The renewable energy law took effect in January 2006.

"The legislation on improving the consumption of clean energy contributes to the global fight on climate change," said Wang Zhongying, a director of the Energy Research Institute under the National Development and Reform Commission.

A national plan on renewable energy development issued in 2007 set a goal for renewable resources to supply 15 percent of total energy consumption by 2020.

Statistics show renewable resources supplied 9 percent of China's total energy consumption last year.

That's an equivalent of reducing 600 million tons of carbon dioxide.

Last month, the State Council announced that China was going to reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with the level of 2005.

Wang said it is vital to realize the renewable energy consumption goal if that emission-reduction target is to be achieved.

"The law amendment strengthens the confidence of achieving the target," he said.

Official statistics show that in 2008, China used more hydro and solar power than any other country and its use of wind power ranked fourth.

Still, two-thirds of China's energy supply is fueled by coal, and the country has become one of the largest greenhouse gas emitters.

Despite the large output of wind energy, industry experts estimated that one-third of the country's wind-generated electricity could not be well transmitted to the grid.





 

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