Those of you following China's progress in the area of photovoltaic solar energy will appreciate the magnitude of China's new solar energy policy. In an email received from Sam Hopkins, Editor of Green Chip International, Sam pointed out how fast things are moving across that Pacifiying Ocean.
Here's an excerpt:
The Golden Sun Project
China unveiled a multi-ministry solar subsidy package on Tuesday that will inject billions into China's solar power industry while pushing towards new national renewable energy targets.
With a three-pronged approach, China's central government will spur the creation of up to 2.6 gigawatts of new solar power capacity through 2011. By that time. . .
The Golden Sun solar subsidy, from the ministries of Finance and Science & Technology, will subsidize 640 MW of solar photovoltaic (PV) installations across the country. . .
The Ministry of Housing and Urban/Rural Construction will administer a 500 MW-subsidy package for BIPV (building-integrated PV). . .
And the National Development and Reform Commission (NDRC) will manage a feed-in tariff to support up to 1.5 GW in new PV installations that will sell energy back to grid utilities.
Local market observers are also expecting a new renewable generation target from the NDRC and National Energy Administration.
The NDRC's Energy Research Institute forecasts an increase in China's 2020 solar capacity goal from 1,800 MW to 10,000 MW, or even more!
State-run newspaper China Daily reports that NDRC officials want to match the European Union and its "20x20" moonshot, by which 20% of electricity capacity will come from renewable resources by 2020.
Right now, China officially has its sights set on 15% by 2020.
"Personally, I think we could reach the target of having renewable sources make up 20 percent of total energy consumption," the NDRC's international ambassador Zhang Xiaoqiang said recently.
And even though China Daily tends to make China look good, this new optimism is far from fluff.
Next to the premium that investors are delivering to stocks like Suntech, perhaps the biggest bet on China's solar power progress is coming from Washington.
U.S. Cleantech Moves Closer to China
On July 15, the U.S. and China told the world about new plans to create a high-tech energy research center that would incubate jointly developed technology while lowering trade barriers.
The first estimate of how much it will take to establish a top-notch lab complex with dual headquarters in both countries is $15 million.
But that's chump change compared to the billions it will take to establish grid-connected solar power in China and expand additional off-grid generation into the hinterlands.
Beijing will subsidize up to 70% of independent solar power projects in unconnected remote areas, official CCTV reports.
Leapfrogging thermal (coal-fired) energy in undeveloped regions will help ensure that more of China's skies stay blue and, more importantly for investors, that new solar customers will chip away at China's excess domestic capacity.
More than 95% of the solar cells produced in China are currently sold abroad.
With Golden Sun and other new initiatives, China's solar power producers will have a more robust local market to add to their revenue sources abroad.
Also, check this China solar energy article by Tom Friedman of the New York Times, posted on CleanTechnica.com:
As I write this I am preparing to board a very long flight to China, where I’ll be talking to a few Chinese PV module manufacturers, as well as our existing inverter supplier, Motech, in Taiwan. This will be a chance to meet and greet potential future suppliers on their own ground, and review factories as we consider sourcing more materials from China, but there are many things I already know before embarking.
Yes they have a labor advantage, but China is also pumping a lot of money into R&D in order to make the next generation of renewable energy products, and they are succeeding.
The U.S. does not have a command and control economic system, nor am I suggesting that it should. But when it comes to alternative energy, we can learn a lot from China’s strategies – regardless of differences in our economic systems. China is telling their banks to support PV companies with strong loans, both for domestic and foreign. So the real irony is that I am going to China not just to find products, but to find financing (preliminarily offered) to install those products in the US. The engine for job creation in the US may well be Chinese bank project funding. Meanwhile, U.S. banks are still waiting on a loan guarantee program, which was promised six months ago, is guaranteed to be complex and may not even work. The last U.S. loan guarantee program failed.
The demand for solar exists. The need for action exists. All that’s missing is political will, and streamlined policies that will strengthen our economy, create jobs, save the environment and, in the long term, decrease the cost of living. It’s time for the U.S. to lead; we just need leaders with vision, who will quickly put that vision into action.
Chinese Solar Energy links:
Wikipedia entry on Solar Power in China
PV Solar Energy Stocks
China and USA competing for solar energy dominance
Lessons from China's Solar Power Programs
Major Global PV Solar Energy Company Websites Links
Clean Green Renewable Power:
Investing in Geothermal Power Companies
Wind Energy Stocks Investing Tips
Water Purification, Desalination, Energy From Water Investing
Best Green Stocks Blog
Green Mutual Fund Investing Info
Green Stocks Investing Network
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Asian shares were weathering a soft reading on Chinese manufacturing on Thursday as it only whetted expecta-
tions for more policy stimulus there.
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