China to unveil multibillion-dollar renewable energy plan

The Chinese government is working on a 10-year initiative that would see 15 per cent of the country's electricity generated from low-carbon sources by 2020, according to reports in China Daily.

Zhang Guobao, head of the National Energy Administration, told the state-owned paper that the plan, which would see billions of dollars invested in wind, solar and nuclear power, is set to be launched in the coming months.

He also revealed that the recently formed National Energy Commission, the overarching body for energy policy led by premier Wen Jiabao, will hold its first meeting soon.

Zhang predicted the new plan would trigger huge activity across the renewables sector over the next five years as companies rush to meet the 2020 target. "Power projects take a long time to get up and running, and we are basically allowed five years to complete them although it is a 10-year programme," he told the paper. "Otherwise, the facilities cannot be put into use by 2020."

Investors in Chinese renewable energy projects are also guaranteed a market after China's top legislature recently passed an amendment to its renewable energy law that forces power grid companies to buy all electricity produced by renewable energy generators.

However, Zhang noted that the country faced a challenge to wean itself off coal, observing that growth in energy consumption accelerated last year, having slowed down in previous years. "It appears that some local governments approved energy-guzzling projects during economic crisis," he said. "So only by fully implementing our energy-saving regulations can we realise economic growth with less energy consumption."

The news came as officials at the China Meteorological Administration revealed that an accompanying project is under way to identify the best locations in the country for new wind and solar farms.

The meteorological sector has been entrusted with the task of providing all-round meteorological services in the country's pursuit of a green economy," Zheng Guoguang, the administration's director, told China Daily. " We're monitoring and assessing wind and sunlight that could be developed for the purpose of clean energy."

Luo Yong, chief of the National Climate Center, added that a survey of wind resources was expected to be completed later this year, revealing that early indications suggested that exploiting the wind energy potential could deliver as much energy as 68 Three Gorges Dams, the world's largest hydropower project.

In related news, IBM revealed it is to open a major new $40m (£26.5m) research lab in China in an attempt to tap into the country's fast-expanding smart grid market.

In an interview with Reuters, Brad Gammons, vice president of IBM's Global Energy & Utilities Industry said the company was committed to bolstering its presence in a market that is "pursuing smart grids as aggressively or more aggressively than any other country in the world right now".