China to increase investments in
alternative energy projects
Beijing, Oct 04, 2006 -- Asia Pulse
China will step up investments in projects involving
development of bio-energy and other alternative energies
between 2006 and 2010 to ensure energy security and
maintain its high economic growth. By increasing investments,
the government hopes to ensure China's energy security
as the country fears that the soaring world oil prices
would have a negative impact on its economic growth,
officials with the Ministry of Finance said.
Data showed that China's dependence on foreign oil
reached 43 per cent last year. Departments concerned
forecast that China's oil consumption would hit 450
million tonnes in 2020, with 250 million tonnes to
be imported from abroad.
The ministry, however, did not elaborate on the investment
figures, saying only that it would earmark more funds
for bio-energy, solar and wind energy projects, as
well as for coal-to-liquid fuel projects over the
next five years, Xinhua news agency reported. The
ministry has listed the development of renewable energy
a top priority in the coming five years. It would
also encourage consumers to save energy and make efforts
to build energy reserves.
China has set a target of raising the proportion
of wind and solar power in its total energy supply
to 10 per cent by 2010 and to about 16 per cent by
2020. To achieve the goal, China will need a total
investment of 101.1 billion US dollars by 2020, offering
vast business opportunities for foreign investors.
China, the world's second largest energy consumer
after the United States, promulgated the Law on Renewable
Energy early this year, and put forward in its 11th
Five-Year Plan (2006-2010) the speedy development
of renewable energy. Northwest China's Ningxia Hui
Autonomous Region plans to build nine new wind power
plants with an investment of 2.2 billion US dollars
by 2020, the local government said.
The region is expected to become the country's biggest
wind power generator in 2020, when it will have the
installed capacity of 2,150 MW. The region's installed
capacity of wind power stood at 112 MW in 2005, according
to the China Electricity Council (CEC), an association
of Chinese electricity plants.
By 2005, Ningxia ranked fourth in wind power capacity
after Inner Mongolia and Xinjiang Uygur Autonomous
Regions, and Liaoning Province, the council said.