In today’s talking points, China’s policies push towards a renewable future while remaining a hot-spot for international renewable investment, an Australian plant implements large-scale biofuel generation, and Chinese companies provide Argentinian energy infrastructure.
Accelerated Growth In Chinese Renewable Energy After Policy Initiatives
It is no surprise that China’s renewable energy sector is booming, with China’s National Energy Administration (CNEA) ambitious goal for 15% of the country’s energy consumption coming from renewable sources by 2020. However, it is likely that this will lead to yet another surge of growth in the sector after CNEA issued its renewable portfolio standard, which now aims to increase the share of non-fossil fuels in the energy mix to 20% by 2030.
Furthermore, the RPS’ provincial consumption minimum requirements are seen by Moody’s as a positive addition for renewable energy companies, increasing consumption and further strengthening the sector they operate within. Notably, the country’s coal-fired power producers are likely to face further challenges into the future, with utilisation rates and consumption declining.
Bioenergy And Biofuels – A Growing Alternative
Australia continues its diversification into alternate forms of energy production with the opening of a new boiler which converts sawdust into bioenergy. The $10-million AUD machine, which Korean-owned lumber company Dongwha has constructed, utilises a once-wasted 200 tonnes of sawdust per day of operation. Not only does this eliminate a bi-product which the company found to be redundant, but also assists with reducing the cost of operations.
While the plant is now the largest in regional New South Wales, producing 15MW, three more bioenergy generators are planned for other Australian states in the near future.
Many believe biofuel as a source of energy is on the rise in Australia, including Ian O’Hara, Professor of Biofuels and Biorefining at Queensland University of Technology. The use of boilers will not only reduce company costs but also increase employment locally, benefiting the entire community. Mr O’Hara believes the development of such boilers will develop rapidly over the next few years.
Rising Opportunities For Chinese Companies Amid Argentinian Financial Crisis
China has initiated the construction of two major hydroelectric dams amid Argentina’s financial difficulties. The two dams are estimated to cost $4.1 billion and are Argentina’s first new facilities of the type in 25 years. Gezhouba Group, a state-owned Chinese company, secured the contract for both power plants in 2013.
Through continued investment and currency-swap agreements, China continues to work with Argentina to make both nations a stronger location for mutual trade, investment, and infrastructure.
China Remains A Key Location For Renewable Energy Market Investment
China continues to be one of two leaders for investment in the renewable energy market after a report was published by EY earlier in the month. The report, titled Renewable Energy Attractiveness Index (RECAI), lists China as the top destination for such investment, with the United States of America trailing close behind. The report is published bi-annually and ranks 40 countries based on their clean energy deployment opportunities and investment capabilities.
EY’s Global Energy Leader, Benoit Laclau, highlights the important role clean and renewable energy will play into the future and reinforces that continued growth in all environments must be backed by stable policies and a long-term vision.
Moreover, Australia has moved to fifth place in the report. EY suggests that state policies will help bring new renewable energy projects forwards and that a mainstream position of renewable support has led to a resurgence in investment recently.