Should the World Fear China’s Green Energy?

this week to be closer to China China is now the largest renewable energy market in the world its electricity production from renewables doubles that of the United States yet China's energy needs are so large that renewable supply only about 1/4 of the country's total power generation how has China built its solar industry and what are its current challenges are Liam Neeson yang CJ Johnson Fuji Chitra nakshatra myself a caiman-kun le feu de Quesada no mere father Charlie Luciano Jeong jin-gi Tita I said call sodamlg she took a fan shop father government support has driven renewable energy development but it has also led to over capacity and trade tensions should government support be cut Sansa's don't want energy satyagraha know how the will be served on Just Peachy get Hong Kong but it's not gonna make it mm whatever Oh Tenma quaza hoping some losses on this week follow China's solar energy to be closer to China I'm reading scare headlines in the international media about China's aspirations in green energy China assuming the mantle of leadership of green energy China on track to lead and renewables as US retreats China wants to dominate the world's green energy markets is something bad happening is this a cause for alarm well think about it what's so bad about leading green energy which will make the world economy more sustainable what's so alarming about competition to save the planet the world is unsustainable rampant pollution is causing untold illnesses incurring incalculable costs climate change will devastate the planet inundating coastal cities evaporating trillions of dollars from world GDP China is dedicating enormous resources to developing alternative energy take solar energy China has become the world's largest market for photovoltaics and solar thermal energy since 2013 China has been the world's leading installer of solar by the end of 2018 China's installed solar capacity was about 170 gigawatts how has China built its solar industry and what are its current challenges in particular government subsidies have driven development but government subsidies lead to over capacity and trade tensions should government subsidies be cut follow solar energy to be closer to China China's 13 five-year plan 2016 to 2020 promotes a more service-oriented diversified and less carbon of economy the plan reflects China's ambition to create a low-carbon future with reduced air pollution from fossil fuels according to the World Economic Forum in 2017 China ranked first in renewable energy investment accounted for nearly half of the global total while investment fell by 6 percent in the US and 36 percent in Europe China increased its investment by 58 percent why does China allocate such resources to alternative energy what kind of supporting policies does China have to develop its alternative energy industries arlynn listen yeah in 2014 President Xi Jingping proposed a revolution in energy production and consumption China's energy development strategy calls for a modern energy system that's clean low-carbon safe and efficient in recent years China has spearheaded the global solar power industry thanks mainly to state laws and policies that support renewable energy as well as improving its management we have set up a relatively comprehensive industrial system in terms of photovoltaic cells and PV modules for manufacturing uh China enjoys tangible strength in terms of PV power as it accounts for 68 percent of the global production China is really a champion of the sustainable development goals both domestically but internationally China was one of the first countries reporting back to the international community on their commitment and implementation plan of the sustainable development goals and also in terms of monitoring how how they are being achieved renewable energy is really at the core of achieving a lot of the goals so I really believe that China adapted that view and if you look through back 11 2013 5 year plan we can see the difference we can see that in the 13 five-year plan renewable energy and the whole sustainability agenda is at the core of China's commitment and China's plans on the priorities for for the country why does the Chinese government devote so much resources to developing alternative energy don't go in and possibly good coal has long dominated China's energy mix and continues to dominate it today in fact our current environmental challenges with smog and many other issues is directly related to our huge consumption of coal fossil fuels particularly coal comprised a lion's share of China's current energy mix however to improve this situation and as part of our prioritizing of environmental protection we must reduce our dependence on coal consumption 1 you'll see oil and natural gas are not preferable alternatives because for China energy security is equally important to environmental protection still we want to be less dependent on imported oil and natural gas as well so we must find other ways out to alter the current energy landscape the Chinese government has set its sights on wind and solar energy hoping to develop them significantly enough to not only replace coal but to satisfy our overall energy demands silence we're aware of the cost issue and many other industry related problems but we must seek alternative energies there is no choice issued it so much what's up a portal [Music] solar energy is among the cleanest and the most natural forms of energy and its development is essential for meeting China's energy and climate goals especially in reducing reliance on high emissions coal according to the China photovoltaic Industry Association China's installed capacity of solar power generation reached 170 gigawatts in 2018 among which the newly installed capacity was about 43 gigawatts today five of the world's 6 top solar module manufacturers are Chinese and the target for total solar capacity in China's 13 five-year plan was hit by April 2018 at 140 gigawatts however the state subsidies required for such large-scale solar growth has become an increasing burden on the national budget though the cost of solar energy has been dropping it still remains generally more expensive than fossil fuels and concerns are mounting over the intensified risk of solar over capacity in China what are the specific elements that compose a complete solar energy system and about how much does each cost relatively soon dosage on today's overall costs for the PV industry are dramatically lower compared with a decade ago it's nearly a tenfold decrease the cost we generally discuss refer to the expense of power generation as well as the cost to get that energy on grid then sold to consumers in other words such energy requires on grid transmission in order to reach tens of thousands of households however the nose-diving costs which now enables pv to compete with thermal power in some places actually refers to the cost of getting on grid at later stages though the cost for PV are much higher than those of thermal power indeed the transmission of delivery cost of PV are actually much higher than that of thermal power which remains a stable source of power generation as Cole is in supply PV power however also depends on sunlight for every one degree of electricity produced there must be a consumer ready to utilize it otherwise the energy would be wasted because PV power cannot be stored at least not for now from the perspective of an entire industrial chain the cost of thermal power today is significantly lower than that of PV this fact has caused confusion for PV policymakers it was the solar industry that first raised the so-called affordable on grid price which is said to be competitive with thermal power but on second thought if PV can truly compete with thermal power then why would the government subsidize PV thermal power is given no such subsidy simply put while the on grid costs for PV and thermal power may be similar the transmission cost of PV remains much higher than that of thermal power for a golf example there are other issues here after years of new energy development like basic facilities constructions lagging behind schedule how does China solve these problems it's a recession ethic in the large-scale development of renewable energy infrastructure is occasionally incompatible when uniting power transmission operation and systems including peak shaving facilities China has taken measures to facilitate the coordination of different energy types to ensure that energy infrastructure better serves the growth of renewable energy for example in recent years we've enhanced the flexibility of cold fire power units to bolster the peak shaving capacity of renewable energy and to carve out a larger share of the market we also build more pumped-storage hydroelectric plants as a way to enhance peak shaving capacity in addition energy conservation flexible power consumption and other measures have made the whole system more suitable to extensively exploit renewable energy this process requires the harmonization of technologies institutional patterns and market mechanisms only then can a balanced sustainable new type of energy system shaver season De Laurentiis II although all the pricing pressure of solar photovoltaics leads to over capacity and oversupply how does the Chinese government resolve these problems surgical causation whistle amid the rapid growth of renewable energy some regions have seen the development of large-scale wind and PV power projects they also step up efforts to encourage local consumption as well as the building of transmission channels to expand the reach of wind and PV power across wider areas a broader consumption area indicates greater market potential in recent years the National Development and Reform Commission together with the National Energy administration have taken a series of measures to absorb PV power to further bolster the industry Grid enterprises like the state grid Corporation of China and the China Southern Power Grid have adopted technological measures to support PV for example one major move has been to build transmission channels for PV transportation another approach is market trading on the one hand large-scale industrial enterprises conduct transactions of local electricity to enhance consumption of renewable energy on the other hand power reforms resulted in a new market mechanism which fuel cross province power trading thus we're exploring more channels to absorb renewable energy which drives up the usage rate of PV power developes our data finds you China may have very good technology to replace renewable energy but a lot of the times this there is a barrier to the market entry the biggest challenge is the requirement of upfront capital investments so for example if a new technology is developed to desalinate water using renewable energy or actually just a solar power the technology is there but the upfront investment to create this as other scale as an industry as a sector requires a lot of investment how we can promote this a front invest and putting it into the scale of a long-term vision where we see that there will be return on the investment but at the same time still somebody has to pay for it so it either has to come through subsidies it either has to come through investors who see the long-term possibility or it will be recovered through to the consumers but these are some of the examples where we need to be worked very closely with the private sector and with governments so that we find a solution to take these technologies to market in May 2018 the Chinese government announced it would cut financial subsidies in the solar sector in order to control the breakneck growth in the industry industry players express their deep concerns over the sudden reduction including a direct appeal to President Xi Jinping during his meeting with private business leaders in November no one thought it a coincidence that the very next day the government regulator the national energy administration announced an easing of the cuts what motivated the initial move to reduce subsidies and why did the government change its policy after beating history Jalopy a new policy was released in May 2000 18 that Chinese government will cut subsidies for the solar industry why is the Chinese government putting a break on subsidies and what would be the likely impact the additional request for the father the rapid development of renewable energy has indeed brought multiple challenges to the entire power system in fact it demands adjustments from both sides the rapid growth of renewable energy poses a daunting burden for subsidies however as the costs of wind and PV power gradually decline the estimate is that in around two years newly built PV projects will no longer need subsidies the costs too will keep lowering from a long-term perspective the development of new energy including PV power will bring positive social effects for society as ordinary Chinese should pay less fee Unity's like electricity it's necessary and worthwhile to grant subsidies in the very beginning if you consider the added value your long-term social returns that justifies the high absolute figure of today subsidies it's a significant part of China's energy revolution around the corner we can expect to cut in subsidies for PV power once the new herbal energy grows in a scale without finally it would embrace marketization offered and no more state subsidy during this process as the subsidy has gradually cut the new PV project the bid for approval should expect less dependence on that state subsidy this means increased competitiveness for renewable energy technology and fuels greater development potential down the road going to be financially why did several solar companies experience severe financial problems and years ago driven by over capacity through government subsidies cause market distortions or are there other reasons Jesus what Balaam wasted to move ok the one to you I don't believe it was government subsidies alone that led to such problems government subsidies were intended to be that strong the downside though is if we fail to slash those subsidies promptly as soon as a related costs drop moreover investors weren't given clear signals that they should expect the subsidies cut in theory a reduction PV costs can be clearly calculated in advance if the government informs investors that a subsidy will be cut gradually for example if cost reductions are expected over three years then the subsidy will be slashed accordingly each of those years then investors would not react so aggressively with heavier investments we now see an influx of investors and their investments joining the seemingly lucrative PV industry in fact the government intends to lower the electricity price even though they've yet to announce it for some investors who seek financing though they deliberately choose ignore this trend surely there are imprudent investors but I believe a majority of them just pretend to be unaware of the trend thus a large amount of capital has become cooled in the PV industry which people believe will become a cash cows featuring a stable price and costs that continually drop in my opinion over capacity in PV wind and solar power is directly linked to investors misunderstanding the subsidy policy or to the government's failure to disclose the subsidy cut I hope our government would be wiser going forward for example it's perfectly reasonable to lower the price since subsidies were given at a time of high costs however it doesn't make sense to grant huge subsidies after those costs start declining moreover the Sun cost if unexpected by investors would also be problematic aggressive investors would find it much harder to decide how to invest wisely Tim it was up hoping top losses on after the policy released Luhan youin head of solar panel manufacturer Tomo a group was invited to President Xi Jinping sit down with private businesses on November 1st 2018 Moo told she that cutting subsidies would tank his business and the next day industry players saw an easing of the new regulation people realized that industry lobbying plays a bigger part in policymaking than they had imagined what's your opinion thank us the dodger was it's supposed to be like this and I hope entrepreneurs will enjoy a greater say in such matters going forward why because private enterprises are in a difficult position when competing in our energy sector they only have limited access to PV photovoltaic cells and electric vehicles yet they have no access to the oil industry for example which is all state-owned how can any private enterprise compete with the china national petroleum corporation established efficient state-owned enterprises already exist and generate all types of energy for private enterprises to compete with such SOS especially in the energy sector it'd be like an egg that smashes itself against a rock in this sense private enterprises find it difficult to compete in the energy sector I hope they will be given a greater say in their communications with the government if wiser enterprises and the government can engage in better communications I believe the energy sector will embark on a tract of healthier Road yeah I'm gonna woman to logging into a kajak eyes-u china's 13 five-year plan 2016 to 2020 presents detailed targets for the energy sector including by 2020 a 15 percent goal for the share of non-fossil energy of overall energy consumption as well as accelerating technological innovation and energy transformation what is China's strategy for energy transformation how to boost the development of China's alternative energy industry the core motivation for energy transformation in Germany is air and environmental protection in the u.s. it's energy security what is China's current strategy for energy transformation she's on one of Hudgins on is it for China energy security serves as a core strategy in general when we talk about clean power low-carbon transformation or any related issues deep down it's truly the energy security that comes first we do have a problem with our exceptionally high consumption of coal especially with the smog it produces we can hardly address that though without slashing coal consumption the current strategy for China to achieve greater energy security is to diversify our energy mix and focus more on developing alternative energy in line with this strategy we'll continue to facilitate the growth of wind and PV power of India just a minute what can you project the possible future direction of China solar industry in specific and also in general for China's whole alternative energy industry what is a bundle jockey for China to build a relatively green energy system we must make breakthroughs in energy storage we now have available energy storage technologies which are economical to some extent but to implement their large-scale use we need technological breakthroughs which will allow for greater quantity and more affordable costs think about it many of the new varieties of energy that we're developing directly involved energy capture take wind power for example today we can only use wind power when there's actually wind but if we have the means to store it we could capture the wind power when there's wind then unleash that power when the wind stops right the same applies to solar power with a storage system in place we could store solar power when the Sun is out and release that power when it's not just a magenta I would say the most important thing is to find the right mix because when we're looking at renewable energy in China and Beyond there solar energy wind energy biomass hydrogen and so forth but they all have their particularities in terms of where and how they can use the renewable sources for energy how these can be transmitted and how these can be made available for actual electricity use for people what should be done to develop China's solar industry any suggestions it will kind of just be you to go to each investors must have reasonable expectations if we hope to contain over capacity in terms of subsidy design I suggest we focus more on upstream industries of the solar power sector so we now subsidize downstream sectors namely see the electricity generated which there's nothing wrong with that since the price is quite clear but it's not the wisest option again take electric vehicles as an example subsidies are given to produce such vehicles regardless of whether they're of good quality or bad as long as they meet specifications and can run on the road what message does that deliver that enterprises should focus on quantity clear not quality for a significant number of these subsidies the manufacturers may somehow collude with sellers directly by offering car shells not an entire car then split the subsidies to summarize this issue first there's an inclination to focus on quantity over quality then the subsidy itself that may be swindled bottles what new energy depends on constantly improving and upgrading technologies these technological advances should lead to a slight lowering of costs which are reliable and sustainable Utz Kolkata what do you think is the biggest opportunity the biggest challenge for the development of China's alternative energy what China's developmental goal for the year 2050 and a Kardashian air tapi our renewable energy is presented with a great opportunity global concerns about climate change demand the reduced consumption of carbon intensive energy as the cost of renewable energy continued to drop all countries appear ready to prioritize the development of renewable energy in that case we're able to tap into a global market huge potential from a policy perspective renewable energy may face many hurdles within a pure market mechanism many countries prioritize renewable energy to go on grid offer a guaranteed purchase of the electricity generated by renewable energy resources or they enforce minimum market shares of renewable energy sources the so-called quota scheming China is studying the feasibility of its renewable energy quota scheme and preparing to implement it that is to say a certain percentage of power must come from renewable energy thus consumers and power utilities would see that we prioritize renewable energy consumption such market mechanisms would lay a solid foundation for the growth of renewable energy and guide our energy system along the track of green low-carbon development phone shark she's your father one is of course how it operates in terms of an incentive systems and in terms of the pricing and an access and China has gone through various policy modifications for that and transitioning from a feed-in type system to a quota system for example at the same time there's also challenges regarding to how the technology is able to keep up with with the needs of the sector a lot of the time they quote experts quote the siting and the transmission of renewable energy Lucian's which of course is a global barrier but I believe China being the the international hub for innovation and technology if we put together China's ability to innovate and create the technology needed and China's commitment to scale up renewable energy solutions I believe that in a few years we will see a major breakthroughs in China China has overtaken the US and Germany to become the number one exporter of solar goods and services a decade ago China accounted for less than 1% of the world's solar capacity by the end of 2017 it accounted for one third in 2017 alone China added more solar capacity than the total solar capacity of any other country China's announcement in May two thousand 18 to cut government subsidies of solar was designed to reduce over capacity and rationalize the market and perhaps in the trade war with the u.s. signal that Chinese solar panel makers would no longer undercut US manufacturers but after the outcry from China solar industry the subsidies were extended to 2022 broadly speaking Solar exemplifies to policymaking concepts in China the first is how the government has become sensitive to feedback from key constituencies and solicits opinions and advice from experts the second is the role of government subsidies in developing new technologies because Solar is critical for sustainable development and for controlling pollution and because solar technologies are still not profitable government subsidies are required to develop the industry and to enable research yet all recognize the trade-off that subsidies create market distortions and exacerbate trade tensions although fossil energy will remain the main energy source through mid-century in the long term solar as the ultimate renewable will dominate the challenge is the short term watch solar to keep closer to China [Music]

Channel: CGTN

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Id: xGdRnA1Ec28

Length: 29min 35sec (1775 seconds)

Published: Thu Feb 14 2019