China to invest $361 billion into renewable energy

• 7 years ago (2017-01-06)
• David Flin

Asia 898 Renewables 780

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China’s National Energy Administration (NEA) has said that it will invest 2.5 trillion yuan ($361 billion) into renewable power generation by 2020. The NEA said that this was part of its plan to develop China’s energy sector over 2016-202, as the market shifts away from coal-fired generation. The NEA said that about half of new electricity generation over this period would come from new renewable power capacity and nuclear power.

The National Development and Reform Commission (NDRC) said last month in its own five-year plan that solar power will receive 1 trillion yuan ($145 billion), as China seeks to boost capacity five-fold.

The spending comes as the cost of building large-scale solar plants has fallen by as much as 40 per cent since 2010. China became the world’s largest solar generator last year. Steven Han, renewable analyst with the securities firm Shenyin Wanguo, said: “The government may exceed these targets because there are more investment opportunities in the sector as costs go down.”

The NDRC said that around $100 billion will go to wind farms, $73 billion to hydro power, with tidal and geothermal power getting the rest.

Li Yangzhe, Deputy Head of the Chinese Energy Agency, said: “By 2020, the annual volume of commercial renewable energy sources available will reach the equivalent of 580 million tons of coal. Along with nuclear energy, we will reach our goal of increasing non fossil fuels to 15 per cent of total energy consumption.”