TOPIC 'Renewable Energy' on Jul 09, 2009 (CEST)
China Sets Its Sights On A Solar Powered Future
China has long been powered by its most available energy resource: coal.
However, a recent effort to vastly increase its capacity for solar power production indicates the Chinese government is preparing for a world without fossil fuels: a solar capacity of 2 gigawatts is expected by 2011, nearly a 15-fold jump from the 140 milliwatts available last year. This, coupled with a governmental subsidy rebating 20 yuan per watt for solar powered systems, shows China is poised for a leap into a new energy future. This subsidy covers roughly half the installation costs of most roof systems, and an overwhelming number of applications for the program have already been processed -- it's now estimated that China will reap nearly 1 gigawatt of solar power from this subsidy program alone.
One reason for the green shift in policy may be health, as air pollution causes up to 1,750,000 premature deaths per year in China. Another perspective shows the policy shift may light a spark in the struggling economy, for despite being the world's largest supplier of solar panels for the past two years, China's energy needs have typically been met with the burning of more coal. But solar panel production is now at record highs, and while value for the panels also increases, it appears China has smartly set itself up for a more sustainable energy future.
China accounts for 15 percent of the world's energy demand, so by targeting solar energy it brings great potential to the solar energy market. Barring a complete economic collapse, the government's new policies would boost solar energy in the domestic marketplace, as well as create greater opportunities for companies worldwide. Last month when American-based Suntech announced they were in talks to build a major solar project in China, stocks in solar rose sharply around the world. The news was seen by some on Wall Street to indicate what the future holds: a long line of massive solar projects to be undertaken by China. Still, the Suntech deal hadn't yet been officially signed, and some investors warned to proceed with caution.
"This is a very dangerous time to invest in the solar sector," said Gordon Johnson of Hapoalim Securities, an Israeli investment firm, "the stocks are moving on rumor and speculation as opposed to fundamentals."
But it cannot be debated that China is targeting solar energy to power them into the future.
Jason Grace
on behalf of the
BascoTec Internet Limited
Technologie Park 13
33100 Paderborn
Germany
