China unveils plans for renewable energy sector

China is targeting the development of non-fossil energy including wind power, solar power, biomass energy, solar energy and thermal and nuclear power equivalent to 480 million tonnes of standard coal by the end of 2015, according to the 12th Five Year Plan (2011-2015) for the renewable energy industry recently released by the National Energy Administration.

China’s wind power installed capacity is expected to reach 100 GW by the end of 2015 with annual electricity output of 190 billion KWH, while solar power installed capacity is likely to hit 15 GW with annual electricity output of 20 billion KWH.

Industry observers noted that the planned target revealed the government’s further commitment to support the development of renewable energy industry, thus lifting the prospects for the further development of those sub-industries listed in the plan.

For the solar photovoltaic sector where most of the Chinese majors have suffered substantial losses, particularly in the Q3 of 2011, China is to further refine favorable policies as well as regulations to give greater support to the industrial chain from upstream to downstream.

In the short term, China will further develop solar technology and demonstration projects to meet the specific needs of some regions in the west China that are rich in resources. Meanwhile, China is planning to implement more policies favoring solar PV power generation and to promote the development of distributed solar PV power generation during 2011 to 2015.