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COLUMNISTS
TODAY'S STORIES
25.07.2008
"The Three Gorges Dam Of The Sky"

The Guardian has a nice article today on China's roaring wind industry, which, like just about everything else in China, is growing faster than anyone thought possible:

It is a spectacular sight: fields of spinning blades harvesting energy and transforming it into electricity for the nearby city of Urumqi. A few years ago, this was the only wind farm of such a size in China. But now, bigger facilities have been built or are under construction in Gansu, Inner Mongolia and Jiangsu. Since 2005, the country's wind generation capacity has increased by more than 100% a year. The government's renewable energy policy aims to procure 15% of the country's energy from non-carbon sources by 2020, twice the proportion of 2005.

This year, policymakers had to double their wind power prediction for 2010, having reached the old goal of 5 gigawatts three years ahead of schedule. On current trends, it will almost definitely have to be doubled again.

No question, coal's still the reigning energy heavyweight in China, supplying about 70 percent of the country's energy needs, compared with 1 percent for wind. Two new coal plants, on average, pop up each week, a fact that gives most greens cold sweats, since all the carbon caps in the Western hemisphere won't mean squat if that pace doesn't slow. The flip side, though, as I noted in a recent piece on China for our print mag, is that the central government in Beijing really is serious about tackling the problem—and aggressive renewable-energy policies are a major part of that strategy.

Even more importantly, market forces are starting to work in wind's favor: The price of coal in China has been going up of late, thanks to (somewhat) stricter safety regulations in the mines and rising demand—the oil-price surge is making it pricier to import coal from places like Australia. Those costs have gouged China's major utilities this year. Some Chinese experts now think wind power will be competing with coal as early as 2015, which would be a huge turning point. The most optimistic projections—coming from Greenpeace—see wind turbines making up 10 percent of China's installed capacity by 2020.

One Chinese energy expert recently told me that the biggest chokepoint, right now, is figuring out a rational scheme for building all those new transmission lines—wind-farm owners don't want to pay for them, and the local grid company often either won't have planned for them or won't want to build lines for a small 100 MW farm. These problems aren't unique: It took Germany and Denmark years to figure them out, and even Texas is just now shelling out $5 billion to address the transmission issue. Once China sorts that out, the upside for wind looks enormous.

--Bradford Plumer

Posted: Friday, July 25, 2008 4:51 PM with 7 comment(s)

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singlespeed said:

Posts like this make me wonder if utility deregulation was such a great idea for the US. I think what needs to happen here in the US is State governments with Federal financial backing need to implement and pay for the installation of large wind and solar installations and then have PUCs operate & maintain them instead of the current status quo of waiting for PUCs to license, build and then do their "delayed maintenance" routine on their infrastructure.

The reason I think the States + Fed should go this route is that it puts the burden of energy production collectively on everyone in the state, ensures that the infrastructure is regional and it gets put into place. The fact that the renewables have instant effectiveness because of the scale of implementation means greater chance of renewables replacing coal-fired power plants and supplementing natural gas plants. Then they can contract out operations and maintenance to the PUCs which can then charge operating and maintenance costs on a contract competitive basis. Technology is introduced faster because the more efficient the system operates the greater the profit incentive are for the operators.

July 25, 2008 2:58 PM

philthyw said:

Deregulation has caused plenty of problems for us in the west but I still hate to give to much control to the feds. I suppose singlespeed has come up with as good a compromise as any since most of the wind / solar power will have to come from the south-west and go to the north over several states.

July 25, 2008 4:09 PM

JEFF FREY said:

So what does this imply for the present right-wing excuse that we should do nothing about climate change because it is all hopeless -- the Chinese won't do anything?

I think singlespeed is on the right track. Deregulation of the power industry has NOT spurred innovation or any of the other benefits that we associate with free markets. Unless you count as innovation the gaming poorly-designed semi-regulated systems as happened several years ago in California. We need serious investment in a more reliable and efficient power grid and this can only happen at the national or nearly-national scale, as every private utility has too limited a horizon to realize the benefits.

July 26, 2008 12:15 AM

aeromonas said:

"the oil-price surge is making it pricier to import coal from places like Australia."

AND

"all the carbon caps in the Western hemisphere won't mean squat if that pace doesn't slow."

Those two lines touch on factors that are creating some major cognitive dissonance down here in Oz.  Kevin Rudd's ALP government is moving aggressively towards implementation of a carbon traiding scheme.  They're aiming for a roll-out no later than 2010 and 40% reductions in local carbon emissions by 2020.  And yet the elephant in the room is that Australia's economic boom--and the economy is still booming despite a tanking stock market--is predicated upon high Chinese demand for Aussie commodities, most notably coal.  So there is every likelihood that in coming years Australians will be financing their ultra fuel efficient hybrids and solar-powered homes with money they earn on the back of coal sold to China.

July 26, 2008 7:20 PM

Brad Plumer said:

Oddly enough, deregulation has helped the wind power industry in Texas (by making it easier to sell power to the grid), although it was hardly a necessary condition--Austin's publicly owned utility is leaps and bounds ahead of everyone else in the state when it comes to green power. That's a smart point, singlespeed, on state governments... I haven't thought about it much, but that suggestion makes a lot of sense.

July 26, 2008 7:41 PM

www.buzzflash.net said:

One nation, left behind. Another Mission Accomplished! www.guardian.co.uk/.../renewableenergy.alternativeenergy is the original source... "The government's renewable energy policy aims to procure 15% of the country's energy

July 30, 2008 1:59 AM

Environment and Energy said:

Given the lift-off achieved by China's roaring wind industry , it shouldn't come as a surprise

August 1, 2008 3:43 PM