Review on wind power development and relevant policies in China during the 11th Five-Year-Plan period

Since 2005, there has been dramatic progress in China's wind power industry. The annual growth rate of newly constructed capacity reached a miracle of 105% and the total installed capacity has increased from 1.27 GW in 2005 to 44.73 GW in 2010, which has exceeded the target of China's energy long-term planning for 2020. During the 11th Five-Year-Plan (FYP), the Chinese government has issued a series of polices to promote and regulate the development of wind power industry, which is the underlying force driving its rapid development. This paper is a systematical review on the current status and policies of wind power industry in China. Firstly the current status including achievements and shortcomings is presented, and then the relevant polices and regulations released during the period of 11th FYP are reviewed. Meanwhile, the main approaches of the policies and regulations in promoting the development of wind power industry are discussed and the issues of the current policies are analyzed. Finally, the paper concludes on the perspectives of wind power policies in China.     

Profitability of wind energy: Short-term risk factors and possible improvements

The wind energy industry has grown considerably in recent years. If the current rate of growth of installed capacity of 1500 MW per year continues, by 2006 Spain will achieve the objective established for 2010 in the “Plan de Fomento” [Plan to Promote Renewable Energies] or for 2008 in the more ambitious “Plan de Infraestructuras Eléctricas y Gasísticas” [Plan for Electrical and Gas Installations]. Achieving these important goals, which require significant investment, depends upon the continued stability of salaries and the willingness of banks to provide financing. Therefore, we studied those factors that had the greatest short-term impact on the economic viability of wind energy projects in Spain and we found that the inherent risk within the sector can become a real obstacle in terms of development and short-term financing. Given the possibility of carrying out financial analysis that is more exhaustive than traditionally employed methods, the various models for evaluating investment in risk conditions were studied with the aim of choosing the ideal tool that takes account of the highly fortuitous nature of wind velocity.     

Fostering a renewable energy technology industry: An international comparison of wind industry policy support mechanisms

This article examines the importance of national and sub-national policies in supporting the development of successful global wind turbine manufacturing companies. We explore the motivations behind establishing a local wind power industry, and the paths that different countries have taken to develop indigenous large wind turbine manufacturing industries within their borders. This is done through a cross-country comparison of the policy support mechanisms that have been employed to directly and indirectly promote wind technology manufacturing in 12 countries. We find that in many instances there is a clear relationship between a manufacturer's success in its home country market and its eventual success in the global wind power market. Whether new wind turbine manufacturing entrants are able to succeed will likely depend in part on the utilization of their turbines in their own domestic market, which in turn will be influenced by the annual size and stability of that market. Consequently, policies that support a sizable, stable market for wind power, in conjunction with policies that specifically provide incentives for wind power technology to be manufactured locally, are most likely to result in the establishment of an internationally competitive wind industry.     

Climate change drives wind turbines

The development and prospects for wind power resources, technologies, investment, financing and banking, incentive policies, and operation and maintenance have become popular issues in wind power industry. An exhibition in May 2007 in Milan, Italy (EWEC 2007), with 229 stands on wind power technologies and techniques coinciding with the Conference, confirmed the popularity of these issues. Governments, International organisations, NGOs, universities, research institutions, and private sector are all paying attention to these issues. Developing countries, China and India in particular, are playing an increasingly important role in developing wind power. The EWEC 2007 confirmed that wind energy will make a substantial contribution to achieving the European Council's recently adopted target: 20% of EU energy consumption coming from renewables by 2020. The Chinese government also announced its new wind power development target: additional installation of new capacity of 5 GW in 2010 and 30 GW in 2020. It is evident that more and more wind turbines in both developed and developing countries will be driven by climate change.     

Incentive policies for promoting wind power production in Brazil: Scenarios for the Alternative Energy Sources Incentive Program (PROINFA) under the New Brazilian electric power sector regulation

The Alternative Energy Sources Incentive Program (PROINFA) was designed in 2002 to stimulate the electricity generation from three energy sources (wind, biomass and small-scale hydro) in Brazil. The Program was divided into two phases. The first one uses feed-in tariffs for promoting the development of 3300 MW. The second one that was originally based on feed-in tariffs was modified in 2003, in order to be based on biddings for renewables. These biddings are capped to limit their impact on the final electricity tariff. Due to this bound, the highest-cost power option promoted by PROINFA (wind power generation) might have development problems. Simulating different scenarios for the biddings, it was verified that the only way to reach the original goal set by PROINFA (10% of the annual electricity consumption provided by alternative sources up to 2020) and, simultaneously, not overcome the bidding bound is to promote biomass-fired power generation alone, during the Program's second phase. However, this action contradicts one of the targets of the Program, which is to diversify the energy matrix. An alternative option could be biddings for renewables according to specific criteria (complementarities, industrial and technological development and cost), based not only on their cost-effectiveness.     

Renewable energy policy and electricity market reforms in China

The article examines the potential effectiveness of the renewable energy policy in China and its regulatory Law framework. It frames the option of renewable energy technology within the background of the long-lasting electricity problems that China has faced including serious supply shortages, reliance on coal, and severe environmental contamination. Its dual administrative and ownership system based on state and privately owned industry is discussed together with the market reform measures adopted in the sector. Current renewable energy policy is analysed, and the scope of the 2005 Renewable Energy Promotion Law is investigated. This is conducted within the context of the electricity sector reform that China adopted, and its effects upon the prospects of encouraging as well as expanding the development of renewable energy. This study draws upon primary information collected from interviews with stakeholders on the policy adequacy, and identifies three main types of shortcomings that have interfered with a more successful expansion of renewable energy in China.     

Transforming shortcomings into opportunities: Can market incentives solve Lebanon's energy crisis?

Over the past decades Lebanon's energy sector has been largely ignored and this has led to high economic and environmental costs. The sector is characterized by electricity poverty, an expanding and mainly unregulated transport sector and a lack of energy savings spanning through all sectors of the economy. Recently, the Government of Lebanon has committed to increase the share of renewable energy to 10% of the total energy supply by 2013 and to 12% by the year 2020; it also aims at reducing energy consumption by 6% by the year 2013. This paper aims at contributing to the formulation of a more comprehensive energy strategy for Lebanon by analyzing the recent changes in policy direction and by recommending legal, regulatory and policy measures in order to transform current shortcomings into opportunities allowing the country to become a regional ‘success story’ in the deployment of renewable energy and energy efficiency.     

The importance of comprehensiveness in renewable electricity and energy-efficiency policy

Based on extensive research interviews and supplemented with a review of the academic literature, this article assesses the best way to promote renewable energy and energy efficiency. It begins by briefly laying out why government intervention is needed, and then details the four most favored policy mechanisms identified by participants: eliminating subsidies for conventional and mature electricity technologies, pricing electricity accurately, passing a national feed-in tariff, and implementing a nationwide systems benefit fund to raise public awareness, protect lower income households, and administer demand side management programs. Drawing mostly from case studies in the United States, the article also discusses why these policy mechanisms must be implemented comprehensively, not individually, if the barriers to renewables and energy efficiency are to be overcome.     

中国农村能源发展现状及“十二五”展望

近年来,我国高度重视农村能源建设,投资力度不断增加,政策法规体系初步建立,农村沼气已实现跨越式发展,太阳能热利用持续快速增长,秸秆能源化利用也取得初步进展。但还存在着优质能源比例低、城乡差距大、投资结构不合理以及市场化程度低等问题。建议在"十二五"期间,按照"因地制宜、多能互补、综合利用、讲求效益"的发展方针,大力推广农村可再生能源和节能技术,采取完善政策法规、开发农村能源市场等措施,促进农村社会经济可持续发展。     

Between fragmented authoritarianism and policy coordination: Creating a Chinese market for wind energy

The Chinese grid-connected wind energy sector has undergone a number of fundamental changes during its 20 years of existence. The scope of this article is to track the reforms of the energy bureaucracy and its policy approach on the one hand and changes in wind energy installations on the other. By comparing three historically distinct phases of wind energy in China it is shown how policy reforms have changed largely from a state of “fragmented authoritarianism” towards policy coordination. In the initial phase (1986–1993), wind energy was expanding very slowly with disjointed policy making and in the incremental phase (1994–1999), the energy authorities were in dispute over the strategy and launched conflicting policy initiatives with poor results in wind energy output. The latest coordinated phase (2000–2006), however, developed a coherent renewable energy agenda and policy regime for the wind power sector. It is found that this phase with coordinated market regulations and incentives has helped give birth to a take-off in Chinese wind energy installations and substantial cost reductions, although the latter is threatening the profitability of wind farms. The article contributes to the academic debate over the role of policy making in renewable energy development and argues that China should continue, and improve, the coordination of regulations and incentives.     

Analyzing policy support instruments and regulatory risk factors for wind energy deployment—A developers' perspective

A transition to a renewable energy system is high on the policy agenda in many countries. A promising energy source for a low-carbon energy future is wind. Policy-makers can attract wind energy development by providing attractive policy frameworks. This paper argues that apart from the level of financial support, both the risks stemming from the regulatory environment (legal security, administrative process and grid access) and the ability to finance projects play a critical role in determining the attractiveness of the development environment. It sheds light on how project developers trade off these different aspects and to what extent the attractiveness of a certain policy framework increases with the introduction of specific measures. Conjoint analysis is employed to provide empirical evidence on the preference of wind energy developers in the EU and the US. The analysis shows that developers' preferences are very similar across the studied regions and for different types of developers. Which policy measures could be most valuable depends on the specific existing environment. In some southeastern European countries, a reduction of administrative process duration may yield the highest utility gains, whereas, in the US, improvements in grid access regulation and an increase in remuneration levels may be more effective.     

An application of a combined wind and solar energy system in Izmir

In this work, a combined system which is produced electrical energy from both solar radiation via solar cells and wind energy by using wind turbine was studied. For wind energy, measurements of wind velocities at 12 m height were taken. Then, these values were calculated for 42 m by using Hellmann equation. After that, wind energy converted to the electrical energy. However, value of solar radiation from solar cells was taken at the optimum slope angle of collector which provided higher energy production for each 1 h during this application. Thus, obtained data from each system were used together for finding total energy. For this study, measurements, which would be used in calculation of wind energy and solar energy were taken for four years between 1995 and 1998 in Izmir. As a result, energy of the combined system could support each other when one of them produces energy insufficiently.     

Technical and financial aspects of renewable energy applications in Poland

The technical and financial aspects of renewable energy applications in Poland are analysed. The main characteristic statistics of the Polish energy situation are presented. The emphasis is put on the technical and financial problems of when and how different renewable sources can be useful and efficient in Polish conditions. The important issue is to identify the energy sectors where the implementation of renewable energy can give good results, improving in an evident way, energy efficiency and the environment. In the paper, examples of renewable energy applications supported by national environmental funds are described.     

Financial impact of energy efficiency under a federal combined efficiency and renewable electricity standard: Case study of a Kansas “super-utility”

Historically, local, state and federal policies have separately promoted the generation of electricity from renewable technologies and the pursuit of energy efficiency to help mitigate the detrimental effects of global climate change and foster energy independence. Federal policymakers are currently considering and several states have enacted a combined efficiency and renewable electricity standard which proponents argue provides a comprehensive approach with greater flexibility and at lower cost. We examine the financial impacts on various stakeholders from alternative compliance strategies with a Combined Efficiency and Renewable Electricity Standard (CERES) using a case study approach for utilities in Kansas. Our results suggest that an investor-owned utility is likely to pursue the most lucrative compliance strategy for its shareholders—one that under-invests in energy efficiency resources. If a business model for energy efficiency inclusive of both a lost fixed cost recovery mechanism and a shareholder incentive mechanism is implemented, our analysis indicates that an investor-owned utility would be more willing to pursue energy efficiency as a lower-cost CERES compliance strategy. Absent implementing such a regulatory mechanism, separate energy efficiency and renewable portfolio standards would improve the likelihood of reducing reliance on fossil fuels at least-cost through the increased pursuit of energy efficiency.     

A quadratic helix approach to evaluate the Turkish renewable energies

The first renewable energy law concerning the ‘Use of Renewable Energy Resources for the Generation of Electrical Energy’ was adopted from European Union regulations on 18 May 2005 in Turkey. The purpose of the Law is to expand the utilization of renewable energy resources for generating electricity. Renewables are defined in the Law as generation facilities based on wind, solar, geothermal, biomass, biogas, wave, current and tidal energy resources, hydrogen energy and hydroelectric generation facilities. The aim of the study was to use strengths, weaknesses, opportunities and threats (SWOT) analysis to identify Turkish renewable energy market strategy and perspective by focusing on four different concepts: policy, market, technology and the social dimension. Different information gathering strategies have been applied such as monitoring of all statements and press releases published in the newspapers by all Turkish renewable energy parties starting from the launch of the law, articles presented in the events between 2000 and 2008 and face-to-face interviews. Our results demonstrated the importance of technology development and knowledge creation for gaining competitiveness on the global arena and the need for a systematic approach for transforming the created know-how into economic and social benefits.     

Economic modelling of price support mechanisms for renewable energy: Case study on Ireland

The Irish Government is considering its future targets, policy and programmes for renewable energy for the period beyond 2005. This follows a review in 2003 of policy options that identified a number of different measures to stimulate increased deployment of renewable energy generation capacity. This paper expands this review with an economic analysis of renewable energy price support mechanisms in the Irish electricity generation sector. The focus is on three primary price support mechanisms quota obligations, feed in tariffs and competitive tender schemes. The Green-X computer model is utilised to characterise the RES-E potential and costs in Ireland up until, and including, 2020. The results from this dynamic software tool are used to compare the different support mechanisms in terms of total costs to society and the average premium costs relative to the market price for electricity. The results indicate that in achieving a 20% RES-E proportion of gross electricity consumption by 2020, a tender scheme provides the least costs to society over the period 2006–2020 but only in case there is limited or no strategic bidding. Considering, however, strategic bidding, a feed-in tariff can be the more efficient solution. Between the other two support mechanisms, the total costs to society are highest for feed-in-tariffs (FIT) until 2013, at which point the costs for the quota system begin to rise rapidly and overtake FIT in 2014–2020. The paper also provides a sensitivity analysis of the support mechanism calculations by varying default parameters such as the interim (2010) target, the assumed investment risk levels and the amount of biomass co-firing. This analysis shows that a 2010 target of 15% rather than 13.2% generates lower costs for society over the whole period 2006–2020, but higher costs for the RES-E strategy over the period 2006–2010.     

Challenges to a climate stabilizing energy future

The paper surveys the major challenges to stabilizing the atmospheric CO₂ concentration. Climate change, and policies to deal with it, is viewed as an energy problem. The energy problem stems from the fact that no combination of carbon-free energies is currently capable of displacing fossil fuels as the main sources of the world's base load energy requirements. The paper provides rough estimates of the amount of carbon-free energy required to stabilize climate, the potential contribution of “conventional” carbon-free energies, the contribution of renewable energies, and the size of an “advanced energy technology gap”. The findings indicate that stabilizing CO₂ concentration will require a long-term commitment to research, develop, and eventually deploy new energy sources and technologies including hydrogen. The paper suggests that the role of technology is what makes stabilizing CO₂ concentration economically feasible. In this respect energy technology and economics are complementary, with advances in the former requiring something more than a reliance on market-based instruments, such as carbon taxes and emission permits. The analysis has implications for the credibility of commitments to target climate change-related factors such as CO₂ emissions.     

Large scale wind power integration in China: Analysis from a policy perspective

Between 2006 and 2010 the installed capacity of wind power in China has doubled and by 2010 China's cumulative installed capacity of wind power ranked the first in the world, surpassing the United States. However, the rapid expansion of installed capacity has not been matched by grid connection, and this deficiency has aroused the concern of both policy makers and scholars. Unlike most of the current studies which focus on technical strategies in China's wind power industry, this paper analyzes the problem from a policy perspective. The paper analyzes the four challenges that large scale wind power integration in China faces: the uncoordinated development between wind power capacity and power grids; the lack of suitable technical codes for wind power integration; the unclear nature of the grid companies’ responsibility for grid connection; and the inadequate economic incentives for grid enterprises. To address these problems, the paper recommends that the government: formulates policies to better coordinate the development of wind power and the planning and construction of power grids; establishes grid codes that reflect in particular the requirements to be met by users of power transmission and distribution networks; and integrates administrative intervention and economic incentive policies to stimulate the grid enterprises’ enthusiasm to absorb wind power generation.