The Chinese wind feed-in tariff system will inevitably attract investments in the offshore wind generation industry there with the hope that it will enable the clean, wind energy to compete with that generated via coal fired plants. The guaranteed premium rate which will be offered to wind generators will be met by the existing grid operators with the additional cost being spread over all electricity consumers. The idea is that bigger, more profitable wind plants will receive a more generous tariff rate in order to help them catch up with the bigger wind farms.

The tariff payments are set at around 0.51 Yuan the equivalent of £0.05 per unit of electricity fed in to the grid, depending on the size of the wind farm. Compared with the rate paid for coal fired electricity (0.34 Yuan) the wind farms will e set to receive a generous payment. The announcement by the National Development and Reform Commission (NDRC) stated that the scheme will,

“change current inconsistent pricing, foster clear expectations and facilitate investments in the sector”.

The previous system which operated regarding wind power electricity purchasing involved public bidding using low-rate tariffs which did not enable most wind farms to gain grid connectivity, a hindrance which meant that at least 20 per cent of China’s wind power producers were unprofitable. With the feed-in tariff system generally regarded as by far the most effective means of generating capital in green energy, China will be set to succeed in its bid to diversify its economy and become a major player in the world of green energy production.

Certainly, with the Beijing Olympics of last year, the worlds eyes were focused sharply on the Chinese capital and the seemingly permanent smog covering which acted as a testament to Chinese heavy industry and the proliferation of vehicles in modern China.

However, it is a marked change in Chinese legislation which prompted the New York newspaper to run with the ‘Green power takes root’ line. The change has come in the form of a national renewable energy level stating that utilities must generate 8 percent of their energy by renewable means by 2020. The fact that this 8 percent figure does not include hydroelectric power adds to the importance which the Chinese are now placing on green energy.

The growing awareness of the lack of long-term sustainability in traditional coal energy sources has prompted the Chinese government to take action to maintain China has a major industrial power well in to the future. There has also been somewhat of a frenzy among private companies seeing the opportunities that will undoubtedly present themselves in the Chinese renewable industry, with a growing activity particularly in sectors such as wind and photovoltaic technology which will inevitably boom in China in the near future.

The New York Times was keen to use this Chinese government action to make comparisons with the comparatively weak efforts being made in Washington to spur the renewable sector in the United States. Indeed, in the United Kingdom, with the recent feed-in tariff legislation, members of the green energy industry will be hopeful that government action in the UK will have the same effect it has had on the Chinese market.

The New York Times asserted its almost neurotic view of Chinese renewable growth compared to that of the US by warning,

“You won’t just be buying your toys from China, you’ll be buying your energy future from China.”

China has a target in place to produce 8000 megawatts of energy by wind energy by 2010 which they are set to smash. If China continues apace to move towards green energy, they will surely shame efforts currently being made in the West to develop their own sustainable renewable industries

Gordon Brown’s announcement at the beginning of this year about the introduction of a green new deal, was a reference to the reforms made by the Roosevelt administration in the face of the 1930s depression which gripped the world. Many were encouraged by the language of the announcement, believing it to be a real indication of a move towards a green economy. Certainly, the extension of the Eaglesham Moor wind farm site will go some way to contributing to the low-carbon economy espoused by politicians in recent months.

In real terms, it is likely that the wind farm expansion will lead to the creation of around 300 jobs and will make the site the first over 300MW in Europe with a total capacity of 462MW, enough to power up to 250,000 homes. As the UK government seeks to meet its climate change targets of cutting carbon emissions 80% by 2050, the Whitelee wind farm will provide evidence that there is at least some tangible work being done to both establish a green economy and meet its targets.

Speaking about the expansion of the wind farm expansion, Alex Salmon commented,

“Whitelee in its current form is already flying the flag for onshore wind power in Europe. The planned extension, which I am delighted to announce today, will enable the wind farm to harness its comparative and competitive advantage in wind generated energy within Europe.

He went on to add, “It has the infrastructure, the expertise and the capacity to continue to develop in the future.”

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More: continued here

Arif Allauddin, Chief Executive of Alternative Energy Development Board who led the delegation on the four day visit highlighted both the need for investment and a need for foreign specialist help in developing a successful Pakistani renewable energy program. After visiting a wind farm near Glasgow, Allauddin asserted that for Pakistan, wind energy represents the best alternative to fossil fuels and that the Pakistani government has already set aside large swathes of land for the construction of turbines between Karachi and Hyderabad.

The Pakistani Alternative Energy Development Board has been keen to highlight the fact that renewable investment in their country offers very attractive returns, using the current example of a Turkish company apparently already generating power wind power in Thatta. The UK government, having already passed the Energy Bill in November of last year, has provisions that will consolidate and help attract further investment in renewables in this country. The proposed feed-in tariff, set to be introduced in 2010 will entice investors by guaranteeing a fixed rate for energy fed in to the national grid from green sources. The Pakistani delegation claims that their government is taking similar measures in order to attract UK investors in to their renewable market.

Having already been impressed by some of the renewable operations currently producing power in the UK, Allauddin made clear the fact that Pakistan will, sometime in the near future have to start generating a far greater percentage of its megawatts from renewable sources if it is to protect itself from any future fossil fuel crises.

To oversee this expansion, The Renewable Energy Industry Agency (IRENA) has been established as a multi-national agency dedicated to the growth the renewable sector. It is hoped that the agency will help energy companies invest in renewable plant and increase investment in green technology. Similarly, they will be hoping to develop an awareness of renewable energy solutions in developing nations. Sigmar Gabriel, the German Environment Minister stated that,

“IRENA will help to remove the many obstacles which up to now have delayed the rapid expansion of renewables. The market is still distorted by subsidies for conventional energies, technological know-how is inadequate, information is not always correct.”

Last Monday in Bonn saw the inaugural IRENA conference, attended by over 120 delegates of a number of nations, such as Germany, Spain, Denmark, India, the United Arab Emirates (UAE), and Kenya (all the founder members).

Although the agency is conspicuously missing the membership of such countries as Australia, China, the United States, Japan and the United Kingdom, its original founder members are more than happy with the uptake in participation thus far and are confident that the other major industrial nations will be brought on board eventually. Indeed, a British representative of the Department for Energy and Climate change who was present at the conference was quoted in the Guardian as saying,

“We are certainly supportive and are interested in joining, but we need to make sure that what we’re joining has the right focus. There needs to be more focus on the deployment of renewables rather than just talking policy and issuing papers. And there needs to be a wider membership.”

Having already vaunted itself as a possible headquarter location for the planned International Renewable Energy Agency (IRENA), the Arab state is looking towards a solar future believing that once its fossil fuel resources are expended, viable alternatives will be essential. Currently, Abu Dhabi has around 8% of all global oil reserves and relies heavily on this resource as its major export. Unlike some of its neighbouring states, Abu Dhabi is looking to diversify both its economy and means of energy production as a means of protecting itself against the eventuality of exhausting their current oil reserves.

A spokesman for the Middle-Eastern state was quoted as saying,

“Many [Opec members] see renewables as a threat but the crown prince sees them as an opportunity. He [The Crown Prince] knows that the oil will eventually run out and he wants to ensure there is something left for future generations”.

The move towards solar energy in Abu Dhabi is being led by a private company, Masdar. Masdar hopes to build a completely carbon neutral city in Abu Dhabi using not only solar but also geothermal and wind power. The Masdar group is also making great strides to develop relationships with the west having already invested in British Energy company E.On and achieving the patronage of Prince Charles.

“Payback time will depend on what rate is decided when feed-in tariffs are introduced. In Europe there are many different rates but I would hope for a 20p rate for the UK – the payback time for people with small-wind turbines would be greatly reduced” added Glover.

The Energy Act legislation passed in November will see the full introduction of feed-in tariffs by early 2010 and allow small energy producers such as Proven to sell surplus back into the national grid at a fixed rate. Some in the energy industry have reservations about the public awareness of the feed-in tariffs at this point in time, however at is hoped that come the roll out, knowledge of the tariffs will have filtered through the media. Jamie Glover expressed this concern, “Widespread knowledge of the new feed-in tariffs is not available at the moment so we have not experienced a greater interest because of it. But I am sure that clarification of what the tariffs will be, as well as time, will ensure that the public are more aware of the savings and benefits of generating your own electricity.”

However, despite these concerns during the last year there was a 50% increase in public awareness of the new feed-in tariffs attributed to soaring household electricity bills and a general increase in technological knowledge. Proven, which has recently installed a turbine at a school in Leeds certainly believes that by 2010 a 20p tariff rate will make their business viable in the long term.