Chapter 259 - Electricity Policy and Wind Energy Development in China

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This chapter discusses electricity policy and wind energy development in China. It is forecast that China's economy will continue to expand at a sustained high growth rate well into the 21st century. Rapid economic growth will increase its commercial energy use and greenhouse gases (GHG) emission. Electricity demand is increasing and will continue to do so with the modernization of China. There is a common consensus that renewable energy can play a more meaningful role in meeting China's growing energy demand now and in the long-term period by diversifying energy sources without causing unsustainable pressure on the environment. The realization of this potential requires a strong policy framework and an institutional capacity in place to promote cost reduction coupled with international transfer of renewable energy technologies in order to nurture and develop a demand-driven commercial market. The objective of this chapter is to examine a series of policy-induced barriers to commercial development of grid connected wind power generation and to assess the impact of institutional and corporate restructuring on the development process in China. It will also analyze the dynamic role of the foreign developer through a joint venture and how it can contribute to cost reduction in grid connected wind power generation on a large-scale and commercial basis and help China make the transition from pilot demonstration to technology commercialization in China.