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December 23, 2009

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Green line on power taken to next stage

CHINA'S top legislature yesterday discussed a legal amendment to require electricity grid companies to buy all power produced by renewable energy generators.

The State Council energy department and China's power regulatory agency should supervise the purchases, said the draft amendment to the Renewable Energy Law, which was submitted to the Standing Committee of the National People's Congress for its second reading.

It is a key official measure to support the country's fledgling renewable energy sector, according to experts.

Enterprises refusing to buy power produced by renewable energy generators would be fined up to an amount double that of the economic loss of the renewable energy company, the draft said.

However, some lawmakers said the development of renewable energy in China faced many problems such as difficulties in connecting with the grid, over-production of wind-power and solar-cell material, and a lack of innovative key technologies.

They suggested that revision of the law should focus on prevention of "blind development of renewable energy."

Industry experts estimated that one-third of the country's installed capacity of wind power could not be well connected to the grid.

Of various types of renewable energy in China, lawmakers said, hydropower's quality and technology was the best. They suggested further standardizing hydropower development.

Other lawmakers said the country should support the development of biomass energy using crop straw to improve ecological environment and farmers' income.


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