The Chinese sustainable energy industry has expanded to be the largest in the world since renewable power laws came into force in January 2006 with the fast use of renewable energy sources and the development of related technology. In 2018, 26.7% or 1,867,000 gigawatt-hours of energy was produced by renewable, up 10.6 percentage fold from the 2005 mark. Over 3 billion Yuan ($434, 66 million) was in the budget, as shown by the National Energy Administration (NEA) and the Ministry of Science and technology for research and development for renewable energy technology, over both the 12th and 13th five-year plans (2011-20).
Wind energy and photovoltaic capacity in China should maintain a full electrical grid equilibrium in the upcoming 14th Five-Year Plan (2021-25). Thus, a new normal in China where its production cost will be equivalent to or below energy from the grid, due to the sacrifices made by China towards a cleaner energy blend, industry analysts have pointed out. During the China EV 100 conference conducted on 10-12January, Li Ye, Chief Regulatory Officer of the National Energy Administration, said Chinese Non-fossil energy resources exceeded 800GW at the end of last year, comprising 41.5% of the overall power. The hydroelectric, wind, and Photovoltaic capacity collectively, reached the highest rates in the remainder of the globe, with 360 GW, 200 GW, and 190 GW. He reported that the mean hydro, wind, and photovoltaic power consumption levels exceeded 97%, 96%, and 98% in 2019, respectively, in the year 2019 Thirty percent of the total energy generation comes from non-fossil energy that also involves nuclear power.
The Chinese research director at Bloomberg New Energy Finance, Kou Nannan, said that improving competitiveness on the markets will further fuel Chinese new energy industry growth. “In the 14th Five-Year Strategy era, prices of wind and Power progressively continue declining, rendering them more affordable as energy market changes intensify and free markets play a greater role in the sustainable energy field” he added. In the long run, due to competition in the market that lowers costs, the renewable energy industry evolves despite incentives in a constructive way.
As shown by Kou, the company wants the governments to limit incentives for new ventures and eventually phase them out, even if some sectors can’t make competitive progress in specific areas without these subsidies. He adds that a renewed focus during the next step of renewable energy production ought to be to reduce the use of clean energy, particularly in the eastern and central parts of the nation. Developing new grid storage, demand-side reaction and micro-grid technology are also relevant, considering the progressively digital futures of clean energy.