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The National Energy Bureau (NEB) has published details of itsproposal to introduce a quota system to increase the amount ofrenewable energy generated and consumed in the country. Wind power will be responsible for meeting the lion's shareof the targets, since hydropower has been excluded and otherrenewable sources such as biomass and wave and tidal energy are ata relatively rudimentary stage of development. The quotas will apply to big power companies, grid companies andlocal governments and will be brought in this year, though the NEBhas not released an exact date. NEB introduced the system to help solve China's chronicgrid-access problem, where one third of turbines are not connectedto the grid. Power companies have been forced to curtail windpower, with around 10 billion kilowatt hours (kWhs) lost in 2011alone. This has dented wind power companies' enthusiasm toconstruct more wind farms. "The quota mechanism is exactly designed to solve the problemof who will generate wind power, who will buy wind power, and whowill use wind power," said Meng Xiangan, vice-president ofChina Renewable Energy Society. Under the NEB quota, power companies that generate more than 5GWwill have a requirement for 11 per cent of their installedcapacity to come from renewable energy sources. They will also haveto meet a target for electricity from renewables to comprise 6.5per cent of their gross power generation. Guodian Corporation, one of the top five state-owned powercompanies, already has enough renewable energy generation to meetthe target, with 22 per cent of its total installed capacitycoming from renewables by the end of 2011. This includes 12.3GW ofwind. The quota will also place a requirement on China's three gridcompanies to buy a percentage of electric power from renewableenergy sources by 2015. State Grid, which supplies 88 percent of China's electricity, will have renewable-energyelectric power constitute 5 per cent of its generation capacityby that date. South China Grid will have a quota of 3.2 per cent. Inner MongoliaGrid, supplying electric power to the western half of InnerMongolia, will have a quota of 15 per cent, and Shaanxi provincialpower grid 10 per cent. Inner Mongolia Grid says that wind power will supply 10 percent of its power mix by the end of this year, so it will haveno problem to meet the 15 per cent quota. Four regions As for electric power users, each province will be given specificquotas to consume renewable energy generated electric power. NEBhas separated the country into four types of regions with differentquotas, in line with renewable energy sources, economic aggregate,total electric power consumption, and electric power transmissioncapacity in the provinces. To monitor implementation of the quota mechanism, NEB said it willrelease public notice on the previous year performances of relatedparties in the beginning of each year. However, NEB has not outlined practical economic measures toencourage or penalise parties in implementing the quotas. Gridcompanies are not enthusiastic about the quota mechanism, accordingto industry officials. As a "go-between" in theelectric power market, grid companies buy renewableenergy-generated electric power from power companies and sell thepower to end users, and they are more interested in how much theycould earn in the business. Li Zuojun, deputy director of the energy and environment instituteunder State Council Development and Research Center, said that topromote the quota, China must first ensure that grid companies willprofit from the process. Li said the government must force gridcompanies to buy the relatively higher priced electric power fromrenewable energy sources and, second, subsidise grid companies. In April, NEB issued an interim measure on management of fundssubsidising feed-in tariffs from renewable energy sources. Chinawill subsidise grid companies for constructing and maintaining gridsystems transmitting renewable energy generated electric power,including wind power. The subsidies are CNY 0.01/kWh ($0.002/kWh)for transmission lines within 50 kilometres, CNY 0.02/kWh fortransmission lines from 50-100 kilometres, and CNY 0.03/kWh fortransmission lines over 100 kilometres. Industry officials said the the quotas may solve some problems butcannot get rid of all problems on grid access. I am an expert from lchem.net, while we provides the quality product, such as steroid Manufacturer , Cinnamic Series Manufacturer, steroid,and more.
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