Environmental Engineering Reference
In-Depth Information
forms the core of China's electricity generation sector, the government is
well aware of the need to diversify for the economic, environmental and
resource security reasons stated earlier. In attempting to encourage such a
transition, it has enacted a number of policies to nurture local wind turbine
and component manufacturers and is striving to provide the electricity grid
infrastructure and economic climate necessary to encourage further expan-
sion of wind power capacity.
On the other hand, a pragmatic approach to development planning, sup-
port for scientiic development and a belief that China's industrial com-
petitiveness must be honed through progressive exposure to world class
competition also lends support to the promotion of nuclear power and carbon
capture and sequestration (CCS) research. As mentioned earlier, the CPC still
intends to commission 60,000 MW of nuclear power by 2020. It is also well
down the road in piloting CCS technology and has already collaborated with
Australian partners on domestic trial projects. For example, the Xian hermal
Power Research Institute has already developed a CCS system that is purport-
edly capable of recovering more than 85% of CO 2 emissions, using equipment
that has been entirely designed and manufactured in China. 82
6.6.3 Fiscal Health
he inancial health of the CPC plays an enormous role in inluencing the
development of energy policy, because many of China's electricity generation
irms are still government-owned and this means that the ability to com-
mission new power projects is directly linked to iscal inancial health. his
is particularly true at the provincial level. Since the 1980s, provincial-level
control has grown to the point where 45% of generation assets were owned
by provincial-level companies in 2006. 83
he inancial ability of the CPC to facilitate technological transition within
the electricity sector is enhanced thanks to an expanding economy and a
high level of government savings. Despite extensive investment demands
to bolster infrastructure and enhance social services, the government has
managed to maintain iscal surpluses since 1992. 84 Table 6.6 outlines the
extent of savings accrued. Between 2002 and 2008, the CPC amassed over
US$922.7 billion in savings. Overall, the combination of a high degree of
government savings and a proclivity on the part of the CPC to strategically
guide economic development means that policymakers are able to think and
act strategically in regard to electricity policy. In testament to this, as men-
tioned earlier, China's eleventh national development plan (2006-2010)
established robust targets for hydropower, wind power, solar PV, biomass,
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