Alternative Energy
Issue 39 - Mar 08

Keeping China powered is already a challenge. Claire Saeki investigates how one of the world's biggest greenhouse gas emitters is tackling energy generation.

Power outages across china have caused devastation and deprivation to millions of people across central and southern china this winter. The worst snow storms for 50 years are estimated to have caused the loss of an area larger than England to China's already depleted forests. Cities were also damaged as buildings and infrastructure collapsed. As transportation ground to a halt, it became clear that in many provinces the additional power required to deal with additional heating and alternative transport wasn't available. Huge numbers of people were simply stuck in the cold and dark.

Managers of hospitals, hotels and other mission critical facilities face disastrous consequences when this is the case. Many facilities have backup generators to cover during intermittent or disabled mains power supply. The majority of additional power supply comes from diesel generators (of which China is the world's largest manufacturer), which are cheap, reliable and effective in cold weather. However, this technology is anything but green, the quality of diesel pumped through generators in China is of a low grade, producing even fouler fumes than regular coal fired power plants.

Luckily, China has already recognised need for alternative power supply and, given the scale of the shortages it is no surprise that the country is one of the largest global developers of alternative energy. As such, it may be one of the places where alternatives to highly polluting coal, diesel and petroleum will see their first widespread commercial uses. Viable alternatives include small hydro schemes biomass, biogas and liquid bio-fuels, according to Gold Standard, a company that certifies and funds carbon trading projects

Trouble in the grid
China's grid energy supply is in all sorts of trouble. Balancing unprecedented economic growth with environmental concerns is a difficult task. A lack of regulations and unlicensed operators mean that the coal mines which fuel the majority of China's power stations are the world's most dangerous. Recent disasters, negative publicity and grassroots protests are all affecting the industry at the same time that the government is trying to downsize reliance on coal. China's state news agency, Xinhua, reported that China would continue shutting down small coal-fired power stations in 2008, targeting a total reduction of 13 million kilowatts, as part of its efforts to save energy and reduce greenhouse gas emissions.

The figure is about 30 percent more than the target set for last year by the National Development and Reform Commission (NDRC), the country's economic planning agency. The coal plant closures have left the country with a power gap of up to 69.63 mil kilowatts (kW) as a coal shortage cuts generation at some plants, according to the State Electricity Regulatory Commission (SERC). The coal gap is estimated to be at 330,000 tons per day. This has led 13 provincial-level regions, including Hubei, Sichuan, Shaanxi, Yunnan and Guangdong to ration electricity, according to SERC chairman You Quan. Concurrently, drought has reduced hydroelectric output and hampered waterway coal transportation. Severe power shortages affected most Chinese provinces and cities from 2002 to 2006, and have come to global attention during January and February 2008.

The new wave
Even before the disastrous cold weather brought power shortages to the fore, the development of renewable energy sources at all levels in China was already booming. Mid cold-snap crisis, on 29 January, ReneSola Ltd began trading on the New York Stock Exchange at US$13 per share for 10 mil American Deposit Shares. The company produces materials for solar cells and supplies to some of the leaders in the industry, including one of the world leaders in PV cell technology, Suntech Power Holdings Co. Suntech's Chairman and CEO, Dr. Zhengrong Shi, was named one of China's Green Persons of the Year on 14 December 2007 for his outstanding contribution to environmental protection initiatives and environmental awareness within China

On receiving his award Dr. Shi said: "The increasing symptoms of climate change are a concern not just for China, but the entire world and I believe that it is our responsibility, both as individuals and as corporations, to proactively support initiatives that conserve our environment and encourage sustainable development. I have no doubt that solar power will play a critical role in this broader environmental conservation movement, and Suntech will continue to drive technology advancements to reduce cost and facilitate the widespread adoption of solar power." Suntech is currently constructing its new headquarters in Wuxi, China, to be powered by 85 percent renewables. The building will incorporate a wide variety of environmentally friendly architectural techniques including geothermal heating, convection cooling, extensive use of natural light, rain water recycling, and a 1MW solar facade that are designed to ensure that the building will generate 85 percent of its energy needs from renewable sources.

A renewable future
In an article by Worldwatch Report: Powering China's Development: The Role of Renewable Energy by Eric Martinot, Li Junfeng, a landmark renewable energy law, enacted in 2005, supports continued expansion of renewables as a national priority. China currently obtains 8 percent of its energy and 17 percent of its electricity from renewables, shares that are projected to increase to 15 percent and 21 percent by 2020. Biomass and bio-fuels are likely to grow and China only needs to tap into its large agricultural and forestry wastes to make this a possibility. The authors predict that China will likely meet and even exceed its renewable energy development targets for 2020. By that date, the total power capacity from renewables could nearly triple from 2006 levels, and reach 400 gigawatts by 2020, with hydro, wind, biomass, and solar PV power making the greatest contributions.

Martinot notes that rooftop solar collectors currently provide hot water to nearly 40 million households worldwide, most of these in China, and more than 2 million geothermal heat pumps are used in 30 countries for building heating and cooling. Biomass-fueled heating is even more widespread, providing five times more heat worldwide than solar and geothermal combined. While China's remarkably inadequate electrical infrastructure was painfully revealed this year, an opportunity to adopt faster to market, cleaner and proximate energy sources also became realistic. The resulting pain may be the first in a series of events that puts China at the forefront of green power generation. RFP

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