China mulls setting up renewable energy development fund

Aug. 25, 2009 (China Knowledge) - Chinese lawmakers are considering establishing a government fund to support the development of the renewable energy industry and to strengthen the government's regulations.

The plan is part of the draft amendment to the renewable energy law, which was submitted to the country's top legislature, the Standing Committee of the National People's Congress, for its first reading on Monday.

The draft amendment stipulated that the country will set up a new fund by integrating the existing renewable energy fund and income from surcharges on electricity generated from renewable sources.

The fund will support scientific and technological research, project testing and certification. It will finance renewable energy projects in rural areas and enhance the utilization and localized production of renewable energy. The draft amendment also provides subsidies to support power generation enterprises.

Management of the fund will be worked out by the finance, energy and pricing departments of the State Council.

China will increase its use of renewable energy to 15% of its total consumption by 2020 to boost the development of green energy and ensure sustainable economic growth, according to a national plan on renewable energy development launched in September 2007.

Last year, China's installed capacity of wind power amounted to 12.5 million kW. The use of hydropower and solar power has also increased rapidly and ranks the first in the world.