Renewable energy has gradually become China's energy engine. Although its development in China is not satisfactory, it will never stop. The Chinese government recognizes the huge market potential and strategic value of renewable energy, but this industry also has lingering stubborn illnesses. To make greater progress, it must be changed. With regard to the problems faced by the development of renewable energy in China, the outside world has focused on reducing government intervention and increasing effective supervision. The outside world believes that in order to have a broader energy development, China needs to create a highly integrated and open electricity market. In 2010, China surpassed the United States to become the world's largest electricity market. China doubled its installed capacity in 10 years, reaching 1.1 TW in 2011 and expects to reach 2.4 TW by 2030. In 2011, China's power generation reached approximately 4,700 TWh, accounting for 22% of the world's total electricity generation. In contrast, US power generation accounted for 20% of the world's total, while Japan accounted for only 5%. In the framework of China’s power generation resources, coal accounts for 65% and is the backbone of China’s energy. Power plants are the largest coal consumers in China. Objectively speaking, it is almost impossible for coal consumption to drastically decline. It is predicted that by 2020, China's coal consumption will increase by 35% over 2010. Reliance on fossil fuels has made China one of the countries that have released the most greenhouse gases worldwide. The government promised to reduce emissions through optimizing energy composition and other feasible measures, and emphasized in the 12th Five-Year Plan that sustainable development is the key to economic development. The energy sector plans to invest at least $830 billion in the power industry. Gas-fired power plants, renewable energy generation and transmission networks are the top priorities for investment. At the same time, China is promoting scientific and technological R&D in the renewable energy industry and strives to achieve localization of key renewable energy equipment. The Solidiance survey, which focuses on Asia, shows that since 2004, China’s investment in renewable energy has increased at an annual rate of 80%. China's investment in clean energy has soared from 1.5 billion U.S. dollars in 2004 to 49 billion U.S. dollars in 2010, and surpassed the United States for the first time in 2009, becoming the largest investor in clean energy. According to data provided by Bloomberg, China once again dominated the world with US$68 billion worth of investment in 2012. This figure accounts for 1/4 of the total global clean energy investment. At this point, China has established itself as a global leader in renewable energy. In 2013, China still plans to increase the installed capacity of clean energy on a large scale. Solar energy, wind power, and hydropower all have different degrees of increase. China's hydropower sector leads the world and accounts for 20% of the global hydropower capacity. At the same time, hydropower is also China's most mature green resource. However, the development of hydropower has lost its momentum. Even if it continues to grow, it will be very gentle. This will also leave China's chances of achieving green energy goals to other renewable energy sources. In terms of wind power, China has 26% of the world's wind power installed, which is also the highest in the world. China believes that the current scale of wind power in the country is still within the scope of rationality, because compared with Denmark, the proportion of wind power in China is still very low, so there is still a lot of space, and it is not surprising that it exceeds 250 GW. The goal of the Chinese government is to have 100 GW of wind power installed capacity in 2015, and the proportion of offshore wind power will increase significantly. China's photovoltaic industry is still expanding. Although 70% of the world's PV installations are currently located in Europe, China is the fastest growing country in the solar PV market. Its installed capacity jumped from 68 MW in 2005 to 3.1 GW in 2011. However, in China's total installed capacity of electric power, this figure only accounts for an undetectable 0.3%. China's previous photovoltaic industry relied on exports, but the financial crisis led countries to adjust their energy policies and Europe's anti-dumping measures. China's photovoltaic exports began to be blocked frequently. Against this background, the Chinese government is changing its strategy to shift the focus of market development back to the country. The 21-GW target that was originally planned to be achieved by 2020 has been advanced to 2015. All the data tells the world that China's renewable energy is huge and it is developing at a high speed. However, the rapid development is behind the deteriorating chronic illness, especially the excessive dependence on subsidies. The photovoltaic industry is a living example. China's imperfect renewable energy strategy has hindered the technological innovation and development. In order to expand market share, China's photovoltaic manufacturers rely too much on the price advantage brought about by subsidies instead of relying on technological progress and efficiency to reduce costs. The wind power industry also faces similar problems. The development of wind power in China is showing a downward trend. Too complicated wind power subsidies are one of the reasons. Tax policy is another reason. Local governments are motivated by policies that force wind power companies to buy locally produced equipment and encourage low-level manufacturing. A highly competitive industry develops in an abnormal way. In addition, wind power grid connection and cross-regional transmission are also difficult. China's wind power facilities are concentrated in three relatively remote and economically underdeveloped regions in the north, which leads to large-scale difficulties in the development of scale. What is even more tangled is that the construction of power facilities is being tied up by local interests. The construction of power plants by local governments is mainly for the purpose of increasing GDP, rather than meeting electricity demand. This has led to serious blind construction in many places. The future of new energy requires a simpler subsidy mechanism and creates a fair and open market environment. China is making efforts to this end. As of August 2011, all wind power projects with an installed capacity of less than 50 megawatts must pass the assessment and registration of the National Energy Administration before obtaining government permits and subsidies. This requirement is mainly to contain corruption and blind expansion at the local level. However, precisely because of this policy, the new wind power construction in the world's largest and most competitive wind power market has experienced a temporary decline. At present, China urgently needs to address infrastructure construction and grid policy deficiencies. Prior to this, many renewable energy projects could not be built or could not be connected to the grid. China’s power grid is monopolized by state-owned companies and lacks effective free market operations, which is a severe test for the future development of renewable energy in China.
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Renewable energy has gradually become China's energy engine