China passes Renewable Energy Law to boost clean energy industry

March 1st, 2005

Chinese top legislature passed Monday the Renewable Energy Law to ease the energy strain, secure the country's energy security and better protect ecological environment. The bill on renewable energy was deliberated a second time during the 14th session of the Standing Committee of the National People's Congress (NPC) from Feb. 25 to 28.

Mao Rubai, director of the Environment and Resource Protection Committee of NPC, said China must vigorously develop renewable energy, because rapid economic development had caused energy shortages, heavy pollution and dependence on imported energy.

In 2003, China's renewable energy consumption accounted for only 3 percent of the country's total energy consumption. The government plans to lift up the figure to 10 percent in 2020.

According to the law, renewable energy includes hydroelectricity, wind power, solar energy, geothermal energy and marine energy, all of which should be taken consideration in the state and local development plans.

The law offered a series of favorable policies for developing renewable energy. For instance, the law demanded all state grids to purchase renewable energy, even though the cost is high. In this way, people's enthusiasm of developing renewable energy couldbe enhanced.

Source: CAS