China

National Development Policy

For over 10 years China has been implementing a national policy to develop its own renewable energy industry; for domestic deployment and then for export.  Continuing strong economic growth and energy demand, supply constraints and concerns about emissions, and the prospect of a fast-growing international market, have all added to the momentum of its development. 

Well Established in Hydro and Solar Water Heating

Through its own domestic deployment, China has for some years maintained leading global market shares in the use of hydro generation, and solar water heating (SWH).  Chinese SWH equipment is starting to appear now in European markets, as Chinese quality controls evolve.  At the same time, high volume manufacture of current-technology PV from modern factories is finding ready international markets.   But it is wind energy that is making the greatest impact; and offering the greatest opportunities. 

Fast Growth of Wind

A combination of supportive market policies for renewables has been operating progressively since 2005, and with particular application to wind.  A Renewables Portfolio System requires generators to increase their use of renewables from 3% in 2010 to 8% in 2020.  A bidding system is in operation for wind developments in a number of locations.  And generators are obliged to purchase available renewables power with floor prices that are largely pre-determined regionally; with a cost sharing system in place to spread extra purchase costs among all consumers.  Prices achieved are generally below those needed in Western countries, even with the extra revenue from the CDM (that is energetically pursued), and a high level of direct involvement in wind projects by the large (and wealthy) generators seems to be necessary. 

This position is not constraining the growth of the wind sector, however.  Industry projections anticipate an increase from 2.6 GW deployed in 2006 to well in excess (possibly multiples) of the 30GW target by 2020. The domestic manufacturing industry is developing quickly.  In practice, the rate of deployment seems to be constrained only by the rate at which China’s manufacturing capacity can grow, accommodating the regulation of a 70% minimum local content.  There are many new entrants to WTG manufacture, from specialist start-ups with international technology and access to international finance, to major established engineering manufacturers.  Offshore wind is also being addressed in order to position the country for this market internationally; by the authorities, and large developer-operators, and some manufacturers. 

Timely to Enter Market; for Wind

Wind power in China is now experiencing many of the same technical challenges as it is in the West.  The industry, in this fast growth situation, is largely accessible to suppliers of specialist technologies and equipment, and is generally moving to adopt international quality standards.  This greater level of accessiblity, and increasing professionalism, has improved the prospect for foreign companies considerably over the last few years.  It is timely for UK companies to enter, or to increase their presence in this market.    

Future Developments

Future developments in China’s renewables sector seem likely to feature opportunties for new technologies for solar applications, and prospectively marine energy conversion will be addressed.  More immediately however is likely to be large scale use of agricultural waste and other biomass, as techniques become available for adequate and economic densification and transport of the energy available from this resource.

For more information about China please visit:

UK Trade and Investment (UKTI) is the Government organisation that helps UK based companies succeed in international markets.  UKTI teams in Posts in China can provide advice and introductions on Government regulation.

China Britain Business Council (CBBC) delivers services to business entering the Chinese market on hehalf of UKTI.  (CBBC) website provides market intelligence and support to British companies looking to do business in China.

China Business Solutions is a private firm, whose website contains useful information on China.

UK in China - the British Embassy website, includes information of interest to those travelling and doing business in China http://ukinchina.fco.gov.uk/en/

The China Business Guide

Report: China's Offshore Wind Energy Sector
for Scottish Development International & UK Trade & Investment
February 2009