China to Initiate More Policies Encouraging Renewable Energy

The issue of energy will take center stage as China’s top leaders gather in Beijing this week during a session of the Communist Party of China Central Committee to formulate proposals for the 13th Five-Year Plan (2016-2020).

Slow economic growth combined with the diminishing energy consumption will pose a great challenge for China's energy sector as it attempts to restructure in the next five years, according to a report by China Daily.

Experts say that the program for the coming five years will focus on controlling coal consumption, stabilizing the use of oil and gas, and increasing the use of wind and solar power. A specific target has already been set to restrict the annual energy use to 4.8 billion metric tons of coal by 2020, according to a statement made by the State Council.

For Lin Boquiang, director of the China Center for Energy Economics Research at Xiamen University in Fujian Province, the goal is achievable if they take into account the slow economic growth and the low demand for energy.

"Coal remains a competitive and convenient choice in practice, particularly at a time when the industry is facing excess capacity," said Lin.

For seven years until 2013, energy use rose to 45 percent due to the rapid economic growth. This was instrumental in affecting global energy demand as China accounted for 23 percent of the world's total energy consumption. However, major coal consumers are facing overcapacity and stringent environmental standards.

Despite last year's decline in China's coal output after 15 years of consecutive growth, coal still accounted for 66 percent of the country's energy consumption, according to the China Daily report.

Experts expect a drastic change in trend as wind and solar power are becoming frequently used.

In its recent medium-term report on renewable energy, the International Energy Agency stated that China accounts for 40 percent of global renewable capacity growth.