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UPDATED: July 20, 2009 NO. 29 JULY 23, 2009
Clean Energy—The Ultimate Solution
As a major consumer of coal, China is facing mounting pressure, and experts are wrangling about which clean energy should come first on the government agenda
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Therefore, it is totally groundless if developed countries charge developing countries for using more energy. What they should really consider is how to support economic development in developing countries and reduce environmental pollution at the same time.

What is the energy structure of China?

China's energy structure is a lot different from that of developed countries. In China, about 70 percent of our energy is coal, 18 percent oil, and just 2 percent natural gas. We have some hydropower, but the proportion is small. Nuclear power accounts for less than 1 percent. But in developed countries, nuclear power takes up more than 14 percent of their energy structure. For instance, nuclear power accounts for 78 percent in France. In most of the developed countries, over 60 percent of their hydropower has been effectively used.

According to our national conditions, what kind of clean energy should we develop first? What are the problems? How can we reduce costs?

Speaking from the perspective of clean energy, coal emits the most greenhouse gases, followed by oil and natural gas, and then nuclear power, which emits almost no carbon. Nuclear power, solar power and wind power are categorized as clean energy. In addition, most renewable energies like hydropower do not have direct carbon emissions. In China, we must put the development of hydropower at the top of our agenda. At present, we have about 300 million kw of untapped hydropower. Of course, hydropower development may cause a lot of social problems, such as migration and changes in the original ecological environment. But compared with coal, the advantages of hydropower development outweigh the disadvantages.

Second, we must pour our strength into developing nuclear power. The investment in a nuclear power plant is the same as that in a wind farm, but unlike wind power, nuclear power is more stable and controllable. In addition, the operating cost of nuclear power plants is not high, thus the cost of 1 kwh of electricity can be kept at less than 0.4 yuan ($0.058), more or less the same as the cost of desulfurized coal-fired power. If nuclear power plants develop production of scale, the cost can be reduced to be equivalent to that of coal power.

If you compare nuclear power to wind power, 1 kw of installed nuclear power capacity can operate 8,000 hours a year, but the same capacity of wind power can only operate 2,000 hours a year. Therefore, a nuclear power plant is equivalent to three to four wind farms.

For China, the third priority in developing clean energy is to make full use of natural gas, which is clean, efficient and stable. In the world energy structure, 25 percent is natural gas, which is a high-quality energy and requires advanced infrastructure and sound pipelines. The expansion of natural gas development, transportation and utilization must be backed by national economic strength, because it is demanding on infrastructure and more expensive for everyday use.

It is time for China to launch large-scale exploration and usage of natural gas. The United States consumes a colossal 700 million cubic meters of natural gas, while Russia uses 300-400 million cubic meters, but the amount is only 7-8 million cubic meters in China. Therefore, the country's potential to develop natural gas is huge. To be more specific, the use of 1,000 cubic meters of natural gas can replace more than 2 tons of coal, and it is cleaner and more efficient than coal power.

Therefore, from now on, we can develop 200 million kw of nuclear power, 300 million kw of hydropower, and 300-400 million cubic meters of natural gas. The massive readjustment will overhaul our energy structure and make it cleaner and greener.

What is the cost of using clean energy?

In terms of cost, coal power is relatively cheap. We only have to spend 4,000 yuan ($586) to build 1-kw installed capacity of coal. But we need to spend 10,000 yuan ($1,460) for the same installed capacity of nuclear power and also wind power. Solar power investment is even higher, several times more than that of wind power, and solar power generates little electricity.

In spite of the bigger cost, we should develop both wind and solar power, because hydropower will soon be totally explored, natural gas reserves are very limited, and uranium resources will be used up one day.

What kind of support does the Chinese Government give to clean energy development?

The Chinese Government is sparing no effort in promoting clean energy.

The only reason the renewable energy industry is profitable right now is that power companies are negotiating with the government, asking for subsidies and requesting higher on-grid prices. For instance, wind power is unstable and uncontrollable with low quality. But the government policy is very attractive. First, wind power is allowed to be connected to the national power grid. Second, the government heavily subsidizes wind power developers. Third, the government will take as much electricity as they can generate. Those are extremely generous policies in promoting wind power.

The fast-growing Chinese economy needs energy. The government will give due support to developers to help them upgrade technology and reduce costs so as to meet the national demand.

It is a grand undertaking to develop clean energy, but we cannot do so blindly. A few months ago, the Ministry of Finance promoted a "solar power roof project" in which the government would subsidize 20,000 yuan ($2,928) for each kw of installed solar power capacity. What does that mean? It means the subsidy for 1 million kw of solar power would be enough to build two nuclear power plants. The ministry's decree immediately led to rampant solar power installation, which in turn forced the ministry to give up a nationwide subsidy and subsidize only a few trial bases.

China is now too hasty in developing renewable energy, and sometimes copies the proposals of foreign governments. But in other countries, if the government raises a proposal, nobody will follow it if the project isn't profitable. The situation is totally different in China. Once the power companies cannot make it, they will immediately turn to the government for subsidies. Some big companies would rather run at a loss to earn market share than calculate the real cost. This phenomenon is irrational and needs to be wiped out.

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