Offshore wind development in China and its future with the existing renewable policy

Based on independent studies, this paper focuses on the significant discrepancy of 15 GW between the installed onshore wind generation capacity and what has been actually connected to the power network to reveal the challenges in meeting the Chinese renewable energy target. The recent accidents in Chinese North-Western transmission network (in February–April, 2011) demonstrated the urgent need for a fundamental review of the Chinese renewable energy policy. Offshore wind has been identified as the most feasible alternative to onshore wind to help deliver electricity to Eastern China during the summer peak time. By investigating and summarizing first hand experiences of participation in the Chinese renewable market, the authors provide the economic figures of the first cohort of Chinese offshore wind schemes. Large state owned enterprises (SOE) are dominating the offshore wind development, repeating their previous practices on the land. While this paper acknowledges the critical role of offshore wind generation in meeting Chinese renewable energy targets, it envisages an installed offshore capacity of approximately 2000 MW by 2015, much less than the 10000 MW governmental estimation, which can be attributed to the lack of detailed energy policy, network constraints, offshore wind installation difficulties and quality issues in the manufacture of turbines.     

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.     

Effective policies for renewable energy—the example of China's wind power—lessons for China's photovoltaic power

China, one of the global biggest emitter of CO₂, needs promotion renewable energy to reduce air pollution from its surging fossil fuel use, and to increase its energy supply security. Renewable energy in its infancy needs policy support and market cultivation. Wind power installed capacity has boomed in recent year in China, as a series of effective support policies were adopted. In this paper, I review the main renewable energy policies regarding to China's wind power, including the Wind Power Concession Program, Renewable Energy Law, and a couple of additional laws and regulations. Such policies have effectively reduced the cost of wind power installed capacity, stimulated the localization of wind power manufacture, and driven the company investment in wind power. China is success in wind power installed capacity, however, success in wind-generated electricity has yet achieved, mainly due to the backward grid system and lack of quota system. The paper ends with the recommended best practice of the China's wind power installed capacity might be transferable to China's photovoltaic power generation.     

Decarbonising power generation in China—Is the answer blowing in the wind?

This paper examines the current situation of wind industry development, evaluates the potentials of GHG mitigation and identifies the key determinants of scaling up wind power deployment in China. China has doubled its wind capacity every year for the past 4 years, the total installed capacity reached 12 Gigawatts (GW) and surpassed the 10-GW target 2 years ahead of schedule in the national plan for renewable energy development [38], [71], [87],and would reach 100–120 GW by 2020 according to the government’s new energy plan. It may become the biggest wind power generation and wind turbines manufacturing country of the world in the next years if the abundant wind resources and enormous domestic market can be harnessed with appropriate policies and efficient technology. The recent positive move in vigorous development of wind power in China implies that the total installed capacity will far exceed the targets of the government’s 2007 renewable energy plan. However, the prosperous Chinese wind market has also revealed some worrisome signals and weakness [28], [58], such as low capacity factor and frequent outage of wind farms, inadequate grid infrastructure, long distance transmission, low quality of turbines, adverse price bidding, nepotism in wind farm developer selection process and regulatory uncertainty and policy inconsistency which all conspire to hinder effective power generation in the massively new installed wind capacities. A coherent policy framework is required for creating enabling environment for accelerating wind energy penetration and state-of-art technology deployment in the country. It is argued that institutional, financial and technical capacity will need to be cemented to exploit the huge potentials of wind resources to meet the rapidly growing demand for electricity in China in the coming decades with minimised environmental implications.     

On the impact of FIT policies on renewable energy investment: Based on the solar power support policies in China's power market

In 2013, the feed-in tariff (FIT) policy was issued in China to promote the investment in renewable technology, but then it was revised because this policy brought a heavy financial burden to the government. By considering the intermittence of renewable resources, we model the implemented Chinese FIT policies and analyze their impact on renewable energy investment in the power market. The open-loop model is employed to simulate the China's power market organized with Power Purchase Agreement, and the closed-loop game is used to characterize the spot power market. Meanwhile, the strategic capacity choices of power generators in two games are compared under four different policy schemes: (i) free competition, (ii) FIT via fixed subsidy, (iii) FIT via price premium and (iv) Chinese FIT by cross control (CFCC). The results show that the CFCC policy is a good alternative to well control the investment in renewable technology, as it can be seen as a comprise between free competition and FIT via fixed subsidy policy. Furthermore, compared with the other three policy schemes, the CFCC policy is capable of keeping renewable power generators from deviating the equilibrium, which implies higher robustness in regulating the electricity spot market.     

How to stimulate renewable energy power generation effectively? – China's incentive approaches and lessons

The renewable energy power generation (REPG) in China has experienced tremendous growth in the last decade. To understand this rapid growth, it is necessary to explore how Chinese government triggers the remarkable development of the industry. This paper offers a systematic analysis of the incentive policy system for REPG in China, covering wind power, solar photovoltaic, small hydropower (single-unit power generation capacity less than 50 MW), biomass power and geothermal power. The incentive system contains laws, regulations, policies and industrial plans issued during the 11th and 12th “Five-year Plan” periods (2006–2015). Four major incentive strategies of the Chinese government are identified: research and development incentives, fiscal and tax incentives, grid-connection and tariff incentives, and market development incentives. The results show these incentive methods have played a significant role in promoting the development of REPG in China, but still there are some problems associated with them. International comparisons of the incentive policies with those of Denmark, Germany and US, as well as the strategies to further improve the Chinese incentive approaches are discussed. This comprehensive analysis of China's incentive policy system for REPG helps to understand China's experience in promoting renewable energy, contributing to better decision-making in policy.     

Renewable electricity in Sweden: an analysis of policy and regulations

This study aims to analyse the developments in renewable energy policy making in Sweden. It assesses the energy policy context, changes in the choice of policy instruments, and provides explanations behind policy successes and failures. Swedish renewable energy policy has been developing in a context of uncertainty around nuclear issues. While there has been made a political decision to replace nuclear power with renewables, there is a lack of consensus about the pace of phasing out nuclear power due to perceived negative impacts on industrial competitiveness. Such uncertainty had an effect in the formulation of renewable energy policy. Biomass and wind power are the main options for renewable electricity production. Throughout 1990s, the combined effect of different policy instruments has stimulated the growth of these two renewable sources. Yet, both biomass and wind power are still a minor contributor in the total electricity generation. Lack of strong government commitment due to uncertainty around nuclear issues is a crucial factor. Short-term subsidies have been preferred rather than open-ended subsidy mechanisms, causing intervals without subsidies and interruption to development. Other factors are such as lack of incentives from the major electricity companies and administrative obstacles. The taxation system has been successful in fostering an expansion of biomass for heating but hindered a similar development in the electricity sector. The quota system adopted in 2003 is expected to create high demand on biomass but does not favour wind power. The renewable energy aims are unlikely to be changed. Yet, the future development of renewable energy policies especially for high-cost technologies will again depend strongly on nuclear policies, which are still unstable and might affect the pace of renewable energy development.     

Renewable energy resources,policies and gaps in BRICS countries and the global impact

This paper presents comparative yet extensive analysis of existing non-conventional renewable resources, energy policies and gaps in BRICS countries. An intelligent transformation to green economy to maintain natural resources is noted. Brazil has stable energy policies and is the leading producer of biofuels following hydropower until 2014 but supported wind and solar power development by tendering specific tariffs for energy generation from solar and wind. Russia needs improvement in its legal and regulatory framework with more incentives in energy policies. China is improving upon wind and hydropower but it needs strong policy measures to put cap on increased CO₂ emissions. India needs revision in energy policy and requires extra incentives and consumer specific energy policies for research-infrastructure and energy generation technologies. South Africa requires lessons to increase renewable energy and reduce coal mining. Moreover, BRICS countries need to redefine their energy policies based upon their existing geographical, economical, societal and environmental conditions which will help in shaping global energy policies and more financial stability. This paper recognizes the potential of BRICS to reshape the global system paralleled with minimizing CO₂ emissions. The concerted role of BRICS needs to be recognized as the leading contributor of global renewable capacity where the developed world is geared and busy to address the environmental issues.     

Green electricity market development: Lessons from Europe and the US

This study compares the development and implementation of green electricity policies in Germany, the Netherlands, Sweden, and the United States, a set of countries applying a range of policy instruments to encourage electricity from renewable energy sources. A general tendency is identified that policies shift emphasis from R&D stimulation towards dissemination and market application of renewable energy technologies. We argue that in light of the long term nature of policy goals on energy security, mitigation of climate change, and environmental protection, the applied range of policy instruments may be lacking in providing incentives for the long term development of new technologies. Clarifying policy objectives would allow careful selection of policy instruments, including support for R&D. Improved capacity building for policy implementation is also important.     

Pros and cons of exposing renewables to electricity market risks—A comparison of the market integration approaches in Germany,Spain, and the UK

The article examines how renewable electricity (RES-E) producers are integrated into the electricity market under the support legislations and regulatory frameworks of Germany, Spain, and the UK. Focus is on wind power, which faces the highest market integration challenge of all RES-E. The analysis shows that the three countries follow contrasting approaches of exposing RES-E producers to the market risks of forward electricity markets, balancing markets and system planning requirements. Risk exposure is highest in the UK and lowest in Germany. From a policy maker's perspective, there is a trade-off between a “high risk” and a “low risk” approach. When RES-E face high market risks, a higher level of financial support is required to stimulate RES-E development than in a low risk environment, but the exposure to market risks may also give an incentive to make efficient use of the respective market, thus limiting the indirect costs to society. The special characteristics of wind energy, however, put natural limits to the response of wind power plants to market prices and locational price signals and will increasingly influence electricity markets and grid infrastructure. These interdependencies should be recognised in the design of RES-E policies and market regulations.     

Understanding China's renewable energy technology exports

China became a major player in renewable energy (RE) technology during the 2000s. Chinese solar PV cell and module makers quickly dominated global sales in that industry, while the country's wind turbine producers became poised for significant exports after capturing their rapidly growing home market. In countries like the US, Chinese RE technology strength has been met with claims of excessive governmental support of exports. This study examines to what extent Chinese firms' solar PV and wind technology successes have been enabled by policy supports, and whether those policies appear to have been driven by broader goals versus RE export promotion per se. The evidence suggests that governmental policy toward both wind and solar originated in a push for export-competitive Chinese companies. But the specifics differed substantially due to the particular requirements of building technological capabilities in each: export readiness necessitated substantial support for domestic installation of wind but not solar PV power. The findings also suggest that as the decade of the 2000s progressed, environmental goals played an increasing role alongside export promotion in motivating and shaping Chinese RE technology policies.     

The renewable energy market in Brazil: Current status and potential

Renewable energy offers a range of options with which to meet the growing demand for energy, particularly in the context of the pursuit (especially in developing countries) of economic development which takes into account social and environmental issues. Brazil has abundant natural sources of renewable energy, such as wind and solar power, hydraulic energy, small hydroelectric plants, ethanol and bio-diesel. These sources form part of the Brazilian strategy aimed at satisfying the demand for 6300 MW of fresh capacity per year arising out of projected economic growth of 5.1% per year over the next 10 years. Renewable energy sources currently provide 47.2% of the internal supply of primary energy in Brazil. Brazil has been pursuing a strategy of maintaining its renewable energy matrix and developing and providing incentives for further low carbon initiatives.In this study we set out an overview of the renewable energy options available in Brazil, their current status, the main positive results obtained to date and future potential. We describe the market for renewable energy in Brazil and examine specific public policies aimed at overcoming barriers to this market, thereby promoting its consolidation and expansion.     

Barriers and opportunities of using the clean development mechanism to advance renewable energy development in China

Studying the barriers and opportunities of using clean development mechanism (CDM) to advance renewable energy deployment in China has a practical significance to achieve its ambitious renewable energy plan which affects the global efforts to curb carbon emission. This paper analyses the role of CDM in promoting renewable energy development in China by reviewing the CDM activities, especially renewable energy CDM activities in China. There are three barriers to utilizing CDM for renewable energy deployment, namely the dilemma of additionality, lower proportional certified emission reduction credit revenues on the investment, and the lack of incentive for technology transfer. Whereas the opportunities of using CDM in promoting renewable energy development include the international carbon market redirection to renewable energy, Chinese renewable energy boom driven by a series of effective energy policies, and additional finance from CDM supporting Chinese renewable energy development. Based on the study on the barriers and opportunities, the article considers that CDM is an indispensable incentive and a viable choice to promote renewable energy deployment in China.     

Wind energy development in China — Reality and market forces

Economic reforms in China started in 1978, which led to profound changes as a result of a consistent structural adjustment and stabilisation policy. The national economy is now characterised with high growth and low inflation. In 1997, GDP was US$ 767 billion and foreign exchange reached US$ 140 billion. This paper examines the outstanding contribution of rural industries to rapid growth of national economy and the consequences of increase of energy consumption and its environmental impact. It also emphasises the necessity and benefit of using renewable energy and wind energy in particular. The paper also addresses the issue of joint venture in farm development in line with Chinese market economy.     

全球太阳能热利用行业激励政策及对我国的启示

太阳能热利用是一种重要的可再生能源,在我国已经实现了商业化运行。如何支持已实现了商业化运行的太阳能热利用行业,是目前可再生能源政策研究的热点问题。本文研究分析了立法、财政补贴和间接市场等激励政策的适用环境,剖析了欧盟、西班牙、以色列和澳大利亚等国家和地区的现行激励政策,针对我国的产业发展现状,提出了相应的政策建议。     

Interactions between renewable energy policy and renewable energy industrial policy: A critical analysis of China's policy approach to renewable energies

This paper analyzes China's policy approach to renewable energies and assesses how effectively China has met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. First we briefly discuss the interactions between these two policies. Then we outline China's key renewable energy and renewable industrial policies and find that China's government has well recognized the need for this policy interaction. After that, we study the achievements and problems in China's wind and solar PV sector during 2005–2012 and argue that China's policy approach to renewable energies has placed priority first on developing a renewable energy manufacturing industry and only second on renewable energy itself, and it has not effectively met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy. Lastly, we make an in-depth analysis of the three ideas underlying this policy approach, that is, the green development idea, the low-carbon leadership idea and indigenous innovation idea. We conclude that Chinas' policy approach to renewable energies needs to enhance the interactions between renewable energy policy and renewable energy industrial policy. The paper contributes to a deeper understanding of China's policy strategy toward renewable energies.     

The achievement,significance and future prospect of China's renewable energy initiative

China's high-speed economic growth and ambitious urbanization depend heavily on the massive consumption of fossil fuel. However, the over-dependence on the depleting fossil fuels causes severe environmental problems, making China the largest energy consumer and the biggest CO₂ emitter in the world. Faced with significant challenges in terms of managing its environment and moving forward with the concept of sustainable economic development, the Chinese government plans to move away from fossil fuels and rely on renewables such as hydropower, wind power, solar power, biomass power and nuclear power. In this paper, the current status of China's renewable energy deployment and the ongoing development projects are summarized and discussed. Most recent developments of major renewable energy sources are clearly reviewed. Additionally, the renewable energy development policies including laws and regulations, economic encouragement, technical research and development are also summarized. This study showcases China's achievements in exploiting its abundant domestic renewable energy sources to meet the future energy demand and reducing carbon emissions. To move toward a low carbon society, technological progress and policy improvements are needed for improving grid access (wind), securing nuclear fuel supplies and managing safety protocols (nuclear), integrating supply chains to achieve indigenous manufacture of technologies across supply chains (solar). Beyond that, a preliminary prediction of the development of China's future renewable energy developments, and proposes targeted countermeasures and suggestions are proposed. The proposal involves developing smart-grid system, investing on renewable energy research, improving the feed-in tariff system and clarifying the subsidy system.     

Wind power in China : Current status and implications for the international community

China has world class wind resources and a future need for electricity to justify large-scale grid connected wind power development. It is also the second largest emitter of CO₂ after the United States, and has seven of the ten most polluted cities in the world [1]. The Chinese Government encourages renewable energy development to reduce the country's reliance on coal and its consequential environmental impacts. Despite this, in 1998 70% of China's electricity was generated by coal-fired power stations, with hydropower generating 23%, oil 6%, and nuclear 1% [2]. Another impetus behind Chinese wind power development is the opportunity to compete in a highly technical and expanding industry [3], with one target that has been mentioned set at 10 % of the global wind power market within the next 20 to 30 years [4]. For environmental and commercial reasons, the Chinese wind power market is not one to be ignored. Carol-Ann Brown, Environmental Change Institute, University of Oxford describes the current conditions for commercialising wind power in China and the implications for the international community.     

ADMIRE-REBUS: modeling the European market for renewable electricity

ADMIRE REBUS is a dynamic simulation model of the international market for renewable electricity. It pays explicit attention to trade barriers, discriminative support policies, risks, and other imperfections inherent in a market in transition. The model matches national supply curves (based on costs and potentials) with policy-based demand curves so as to take into account the discriminative characteristics of policies, where appropriate, and the ability of producers to choose whether they produce for the domestic market or whether they wish to trade their production. Because of the different levels of national support schemes, different submarkets emerge with local equilibrium prices. The paper describes the way in which the model simulates the policy-induced renewable electricity market, and shows results concerning the contribution of several important technologies in five scenarios that differ with regard to assumed ambition level, trade barriers, and timing of EU member states' policies on renewable electricity. Within the chosen scenarios, the model shows wind offshore to be the most sensitive technology with regard to the policy environment.     

The development of a green certificate market

Liberalizing the electricity industry and attempting to reduce the emissions of greenhouse gases are the two dominant trends in European energy policy. The last-mentioned issue might require the contribution from renewable energy technologies, but at present most renewables cannot compete on their own with conventional technologies. Thus, it can be expected that if renewables must compete solely on market conditions alone this will slow down or even halt the development of new renewable capacity. One model in which additional payments to renewable technologies are generated is based on the development of a separate green market. In Holland a voluntary green certificate market has existed since the beginning of 1998. In Denmark a comprehensive restructuring of the legislation for the electric power industry has just been completed, including the framework for developing a separate green market for renewable electricity production. The main objectives of introducing this type of electricity market in Denmark is to secure the development of renewable energy technologies (including contributions to greenhouse gas reductions), while at the same time releasing the Government from the (by now) quite heavy burden of subsidising renewable technologies. Finally, a green market will make it possible for these renewable technologies to be partly economically compensated for the environmental benefits, which they generate compared to conventional power production. With the recent Danish legislation as starting point this paper analyzes possible ways to set up a green certificate market, treating as well some of the consequences produced when the market is actually funtioning. The analysis is applicable for all renewable technologies, but special attention is given to wind power.