China's current pricing mechanism for wind energy needs some revision, as per a recent report.
Greenpeace, Global Wind Energy Council & Chinese Renewable Energy Industries Association recently unveiled the results of the report, "Study on the Pricing Policy of Wind Power in China." The report urges revisions in wind power pricing policy in China.
China has made big achievements in wind energy market. By 2005 end, China had seen completion of total sixty-one wind farms & 1,864 wind turbine (grid-connected) generators. Total capacity increased to 1,260 MW, making China world's 7th largest market. Last year (2005), Chinese govt. revised its wind energy development goal & raised it to 30,000 MW from 20,000 MW. Industry experts believe the target could well exceed if the right policy is implemented.
"China will be the biggest wind energy potential market in future. Australia, India & China have the competitive advantages over other countries as a manufacturing hub for wind equipments. Australia due to its quality products and China & India due to their cost advantages," as per the report "Global Wind Energy Market (2006)" published by RNCOS.
Renewable Energy Law in China came in picture in early 2006. As per implementation rules governing Electricity Pricing, tender should determine the feed-in rates of the grid. The rule received a lot of criticism, especially from industry, which is concerned that the rule will result in low prices, thus lowering down the profit of investors.
As per Arthouros Zervos, GWEC chairman, uncertainty & price volatility due to existing regulation harms domestic & foreign private developers & manufacturers who are under unsustainable price pressure.
In recent news, published in China Daily, China has decided to invest US $ 189 Billion to improve the consumption of renewable energy, as per Wu Guihui, Energy Bureau's deputy director general. Presently, 7.5 % of energy needs of China are met through renewable sources of energy. The country aims to increase it to 10 % by 2010 & 16 % from 2020.
Wind energy, a key source of alternative energy, has tremendous potential. At present, coal-generated power totals for 75 % of electricity in China & results in big environmental hazards. The large-scale acceptance of renewable sources like wind power has become a worldwide trend & China also needs to do the same.
Related Market Research Reports:
Indian Coal Industry Outlook till 2012
Global Biofuel Market Analysis
Asia Pacific Biofuel Market Forecast
