The Government of China is planning to provide $440 billion in stimulus package for improving the renewable energy utilization in the country. China is a coal-dependent country, nearly 70% of its total energy consumption is depending up on power generated from coal, and it seeks to move towards cleaner energy solutions to improve its growth. The country aims to increase the share of renewable energy, excluding hydropower, to 6% of its overall energy use by 2020, from the current 1.5%.
The views from local economic planning agencies and relevant companies about the draft plan will more than triple a goal of 30 gigawatts (GW) announced in 2007 in a renewable energy development plan to touch over 100 GW by 2020.
Zhou Xi’an, of the State Energy Administration has reported that the new plan that will partly focus on wind power would be submitted to the state council, or cabinet.
The new stimulus plan came after China announced its measures to support autos, petrochemicals and eight other sectors as part of a $584-billion package unveiled in November 2008 to tackle the financial crisis.
China aims to reduce energy consumption per unit of gross domestic product by 20% and pollution by 10% by next year from the 2005 levels.