Zhou Fengqi, a senior adviser to the Energy Research Institute of the National Development and Reform Commission, said in an interview with reporters recently that during the “Eleventh Five-Year Plan†period, China’s renewable energy will enter a period of rapid development. Regarding how to realize the large-scale development of renewable energy in China, Zhou Fengqi said that it needs government support, legal guarantees, introduction of competition, and dependence on science and technology.
The development of renewable energy has become a consensus According to Zhou Fengqi, actively promoting the development of renewable energy has become a global consensus. For example, the EU stipulates that the proportion of renewable energy in primary energy sources will increase from 6% in 1997 to 12% in 2010, to 20% in 2020, and to 50% in 2050. Renewable energy will be used throughout the power industry. The proportion increased from 14% in 1999 to 22% in 2010. He said that improving energy efficiency and developing renewable energy have become the world's undisputed two wheels for sustainable energy development. Strategically speaking, the world will eventually move into the sustainable use of renewable energy, and all countries will promote the development of renewable energy as the basic choice for energy development in the 21st century.
According to Zhou Fengqi, renewable energy resources are available for 7.3 billion tons of standard coal per year. In 2000, the amount of development was less than 40 million tons of standard coal. China has sufficient resources for development. In addition, as technology gradually matures and product economics continue to improve, China already has the conditions for large-scale development of renewable energy.
However, although China's renewable energy sources have enormous potential for resources, some technologies have been commercialized, and industries have also seen certain development. However, compared with developed countries, there is still a large gap in terms of technology, scale, level, and speed of development. The development of the renewable energy industry also faces many problems and obstacles, including: the high cost of most renewable energy generation and relatively small market capacity. At present, with the exception of small hydropower, the cost of renewable energy in China is much higher than that of conventional energy. For example, the cost of SHP is 1.2 times that of coal, that of biomass (methane) is 1.5 times that of coal, that of wind is 1.7 times that of coal, and that of PV is 11 ~ 18 times.
Renewable Energy Development Strategy Zhou Fengqi highlighted several strategies for promoting the development of renewable energy in China. These strategies mainly include: government support, legal guarantees, introduction of competition, and dependence on science and technology.
---governmental support. Experience at home and abroad shows that without government support, renewable energy cannot develop rapidly. The advantages of renewable energy are beneficial to the environment, but the regulatory role of the market is not good for the environment, so only the government can accelerate the development of renewable energy. The government's support includes implementing mandatory market policies and economic incentive policies that promote the development of renewable energy.
--- Legal guarantee. All countries in the early stages of renewable energy development developed technology first. Once the technology matured, attention turned to demonstration and cost reduction. Only if the cost is low enough can the market develop. In recent years, some countries that want to develop renewable energy on a large scale have passed legislation to force power companies to supply or purchase renewable electricity and punish those who have not completed the task. In this way, it is no longer necessary to jump directly to the founding market stage in the past. With the enactment of renewable energy coercive market legislation, private capital can be attracted to increase the confidence of renewable energy developers.
--- Introduce competition. In order to develop renewable energy on a large scale, only by relying on the market, through competition, optimizing the allocation of resources, reducing costs, expanding the market, and ultimately achieving commercialization.
———Rely on technology. The development of renewable energy fundamentally depends on scientific and technological progress, continuous innovation, improvement of technological level, and research and development of renewable energy technologies with independent intellectual property rights. It is necessary to improve the conversion efficiency of the components, reduce the production cost of products, and improve the stability and compatibility of the system.
Development of renewable energy policy recommendations In response to the healthy development of renewable energy, Zhou Fengqi made the following policy recommendations:
The first is to enact the "Renewable Energy Law" as soon as possible. He said that the Standing Committee of the National People's Congress passed the "Renewable Energy Law" on February 28, 2005 and will implement it on January 1, 2006. However, some key provisions of the “Renewable Energy Lawâ€, such as the total target system, grid-connected power generation and full purchase system, on-grid price and cost sharing system, fiscal tax incentives, etc., have yet to be formulated by the competent authorities of the State Council’s energy and finance departments. The implementation rules shall be announced after being approved by the State Council.
The second issue is the localization of renewable energy power generation equipment. At present, small hydropower has been commercialized. Wind power and biomass power generation are near-commercial renewable energy. However, most of these renewable energy power generation equipment are imported, and the high price has hindered a large number of applications. Foreign and private capital should be encouraged to enter the renewable energy industry and localize equipment manufacturing to reduce costs.
The third is to increase investment in renewable energy. Zhou Fengqi said that China's renewable energy construction projects have not yet been standardized into the budgets and plans of all levels of government, and energy research and development costs are low. Due to too little investment, there is insufficient funding for development and research. Many key equipments rely on imports, leading to low levels of industrialization and commercialization and slow development. Therefore, he suggested that the development of renewable energy be included in the industrial development and scientific research plans of all levels of government, increase investment, and be included in the budget.
Zhou Fengqi said that during the Ninth Five-Year Plan period, China’s new renewable energy development and utilization rate has reached an annual average of 11.2%, and if it maintains a rate of 11.2% by 2020, it will use new renewable energy resources by 2020. Will reach 265 million tons of standard coal; if the development rate is 15%, by 2020, the new renewable energy utilization can reach 386 million tons of standard coal. He concluded by saying that renewable energy is a sustainable energy source and a future energy source. Whoever has mastered renewable energy sources will grasp the future of energy. China's comprehensive construction of a well-to-do society requires more contributions from renewable energy.
Renewable Energy Needs Rapid Development——Interview with Zhou Fengqi, Senior Advisor, Energy Research Institute, National Development and Reform Commission
Zhou Fengqi Introduction Zhou Fengqi, graduated from the Department of Electrical Engineering of Tsinghua University in 1959. From 1981 to 1999, he served as deputy director and director of the Energy Research Institute of the National Development and Reform Commission. He is currently a Senior Advisor to the Energy Research Institute of the National Development and Reform Commission, a Consultant to the China Energy Research Association, a Vice Chairman of the China Energy Conservation Association, the China Energy Investment Association, a member of the National Key Basic Research Development Program (973) Energy Advisory Group, and an expert on the National Clean Energy Action Plan. Deputy Group Leader, Director of China's Renewable Energy Scale Development Project Office, Consultant of Japan Asia-Pacific Energy Research Center, Chinese Expert of the Energy Strategy and Technology Working Group of the China International Cooperation on Environment and Development. Research areas include energy planning, energy development strategies, energy policies, energy conservation, renewable energy, clean coal technologies, energy and the environment.