Wind Power in China - Wind Power: Politics and Policy - page 181

to manage energy costs in a way that does not create undue hardship for
impoverished rural communities.
Aside from increasing aluence, one key driver of changing perceptions
on good energy governance arises from public health concerns. In China,
respiratory and cardiovascular problems stemming from pollution has
become the primary cause of poor health. 50 Heightened public concern over
the adverse health impact of fossil fuel electricity generation technology
is increasingly fueling public support for alternative energy technologies,
which until recently included nuclear power. 51
In the 1980s, nuclear power development in China was seen as a symbol of
national pride. 52 However, following the nuclear crisis in Fukushima Japan,
public conidence in nuclear power development has deteriorated. Although
many analysts believe that plans for further nuclear power expansion will
not be derailed by the Fukushima disaster, the media and the public are now
beginning to question the safety of overly ambitious nuclear power develop-
ment. 53 he convergence of these two trends—health concerns stemming
from coal-ired power and skepticism over the safety of nuclear power—is
engendering increasing public support for renewable energy solutions in
general and wind power in particular.
6.5.2 Economic → Political
he progressive escalation of fossil fuel prices over the last ive years has
had some predictable consequences in China. High fossil fuel prices have
heightened the economic contribution of fossil fuel resources in resource
abundant regions. his is particularly salient for coal-rich rural provinces
such as Shanxi. However, the escalation of coal prices has also diminished
the national incentive to utilize coal for generating power. Moreover, as coal
prices escalate, alternative energy technologies such as wind power and
mini-hydro have become increasingly cost competitive. he evolving com-
petitive dynamics partly explains aggressive development aspirations for
wind power, hydropower, and nuclear power in China.
In addition to price inlation, fossil fuel commodity prices have been
extremely capricious in recent years. Price volatility is particularly damaging
to utilities and coal-ired power generators. he NDRC's Price Department
has a practice of setting wholesale prices based on province-speciic average
social costs, which tends to push ineicient generators to improve operat-
ing costs. herefore, coal price volatility (which accounts for between 50
to 70% of coal-ired generation costs) complicates the process of rate set-
ting. Moreover, when coal prices exceed benchmark prices for an extended