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Renewable energy quota set for power companies
www.chinaview.cn 2006-01-17 08:23:55

    BEIJING, Jan. 17 -- The country has set a quota on renewable energy use for large domestic power companies in its efforts to diversify energy sources and clean up the environment, the China Daily reported.

    Chinese power companies with an installed capacity of over 5 gigawatts must ensure 5 percent of their power generators are fueled by renewable energy sources by 2010.

    That proportion will rise to 10 percent by 2020, the report quoted Zhang Guobao, vice minister of the National Development and Reform Commission, the country's top economic planning agency, as saying.

    Renewable energy sources include non-fossil fuels such as wind and solar power.

    Hydro and nuclear sources, however, aren't on the list of renewable energy sources that power companies must develop, Zhang said.

    China has around 15 power companies with installed capacities exceeding 5 gigawatts, according to the report.

    The government has also put into effect 12 supporting regulations to supplement the Renewable Energy Law, which came into effect Jan. 1, Zhang said.

    They include higher power tariffs for grid companies that buy electricity generated from renewable energy sources, and tax reductions on equipment procurement and plant construction for renewable energy-fueled power generation.

    China¡¯s total installed power generation capacity rose 14.9 percent to 508 gigawatts last year from 2004, said the report, citing the China Electricity Council, an industry association of power producers.

    Capacity is expected to top 1,000 gigawatts within 15 years, to keep the fast-growing economy on track, industry analysts say.

    The government has pledged to use renewable energy sources to supply 15 percent of the nation¡¯s power needs by 2020, compared with 7 percent currently.

    In another development, domestic grid companies will be able to pass the cost of higher tariffs on electricity generated from renewable sources on to end users across the nation, according to a statement posted Friday on the Web site of the National Development and Reform Commission, the country¡¯s top economic planning agency.

    The tariffs will cover the higher cost of producing power from renewable sources, compared with producing power from coal.

    Those provincial power grid firms should share the surcharges according to the proportion of their sales volume in the national total, according to the report.

(Source: Shenzhen Daily/Agencies)

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