Draft for Emerging Energy Industry Development Planning to be Introduced, Emerging Energy Industry Growing Rapidly

The widely concerned Draft for Emerging Energy Industry Development Planning will be introduced, marking the emerging energy industry has entered the track of high-speed growth.

The Planning focuses on "two objectives" of raising the proportion of non-fossil energy and carbon emission reduction; it is the program of action for guiding and promoting the development of China’s emerging energy industry.

The Planning clearly shows that by 2020, non-fossil energy shall account for around 15% of the total primary energy consumption; and carbon dioxide emissions per unit of GDP shall be lowered by 40% to 45% compared with that of 2005.

The Chinese Government will also provide a strong financial support. From 2011 to 2020, it is expected to directly increase investment by CNY 5 trillion with an estimated average increase in annual output value of CNY 1.5 trillion.

Hydropower and nuclear power will get great support, and the wind power and photovoltaic power generation will also receive long-term support from the Government.

It is estimated that about 40% of the funds will be used for the upgrading of traditional energy; therein, the gross investment of Smart Grid will be about CNY 1 trillion.

As estimated by China Electricity Council, by the end of "12th Five-Year Plan", the clean energy power generation will account for over 30% of the China’s gross generation, and the three main forces will be hydropower, nuclear power, and wind power. Part of the large-scale investment will be used for the development of power plants through bank credits, finally to the hands of equipment manufacturers; and another part will be used directly for the capacity construction of equipments for emerging energy.