Strategy to tackle renewable energy waste

China’s position as a leader in renewable energy has been reinforced by three new measures. Investment in renewable energy has soared $38bn to $111bn in just five years, according to the World Resources Institute (WRI), while China’s electric capacity for solar power grew 168-fold and wind power quadrupled. The total share of non-fossil fuels in primary energy consumption rose from 8.3% in 2010 to 12% in 2015, putting China well on track to meet its Paris commitment to reach 20% by 2030.

However, China, like other countries, faces challenges in its shift to low-carbon electricity. One major problem is ‘curtailment’, which means power grids do not necessarily use renewable power even when wind and solar power are capable of producing it. About 10% of solar power remained untapped in the first half of 2015 and 15% of wind power was wasted throughout the year.

China’s Renewable Energy Law prohibits curtailment, but the problem persists, partly for technical reasons. However, China’s central government recently issued three measures to tackle the problem. First, the government has placed an emergency ban on coal-fired power plant construction in 13 provinces, which had previously been approved. Second, new management rules set an annual minimum purchase guarantee for wind and utility-scale solar generation, securing coverage of costs and a reasonable profit for these projects. Thirdly, new targets have been set for consumption and generation of renewables. Some 31 provinces now have consumption targets ranging from 5% to 13% by 2020. There are also plans to develop a Renewable Energy Certificates trading scheme.