- Improve national policies and regulations to secure large-scale development of renewable energy;
- Identify institutional, economic, and technical solutions for grid integration of renewable power;
- Support national and local renewable energy planning to establish ambitious targets and identify least-cost development options;
- Develop technology roadmaps and demonstration programs for emerging renewable energy technologies; and
- Establish a long-term national strategy to guide renewable energy development to achieve high market penetration.
The China Renewable Energy Program aims to encourage large-scale development and utilization of renewable energy in order to drive down costs, speed up commercialization of renewable energy technologies, and put renewable energy on a trajectory toward achieving high market penetration.
China is now a world leader in wind power installation and solar photovoltaic (PV) manufacturing, and is fast catching up in solar PV power installation. China is moving at full speed to achieve its 15 percent non-fossil energy target for 2020.
However, significant challenges exist for China’s renewable energy to grow into a dominant energy source. First, grid integration is now the single largest bottleneck for renewable power development; solving the grid integration problem will require technical upgrades in generation and transmission, transformation of power sector operation rules, and key institutional reforms. Second, effective supportive policies, and clear management and grid interconnection rules have yet to be established to spur large-scale development of distributed generation. Third, the cost of renewable energy is still high and requires a large amount of public subsidy; stronger incentives are needed to drive down costs through technological advances and economies of scale. Fourth, China so far does not have a clear national strategy to guide renewable energy development. As a result, sectorial policy conflicts and weak policy enforcement are hindering the speed at which renewable energy can replace coal. The Renewable Energy Program supports efforts to tackle these issues.