CRS has been working in China for more than five years through the China Sustainable Energy Program (CSEP) of the David and Lucile Packard Foundation in partnership with the Energy Foundation. CRS is responsible for providing expert assistance and support to Chinese Grantees in the development of renewable energy and energy efficiency in China.

The crowning accomplishment of our China work to date has been the passage of the Chinese Renewable Energy Promotion Law in February 2005. The law itself focuses primarily on the development of bulk renewable power using a Feed-in type tariff calculated separately for each renewable energy technology group. The law includes substantial penalties for non-compliance in the promotion of renewable energy by grid companies, local governments, landlords and others. In addition to bulk renewable power, there are sections related to the use of solar water heating, PV systems, bio-fuels and rural energy development. The supporting documents currently being drafted by NDRC will include a resource plan and more implementation details. The plan includes a near-term target of 5% renewable energy by 2010 and 10% by 2020. CRS staff will continue to work with Chinese Grantees and colleagues in the implementation of this law.

In the coming year we hope to add work on renewable energy related transmission issues as a key element of China’s move toward implementing its new Renewable Energy Promotion Law.

Another major effort is research into international best practices for encouraging local manufacture of wind generation equipment. A paper on this subject: “A Review of International Experience with Policies to Promote Wind Industry Development” is available on the China Program Library Page. The CRS team also continues to work on the Chinese Wind Concession Project as well as providing support to the Provincial Mandatory Market Share (MMS) pilot projects, particularly in the provinces of Fujian and Sichuan. CRS Staff also developed the initial concept of a Green Pricing program for non-residential customers in China’s major cities that is now being implemented in Shanghai by World Bank staff.