The law, approved last week by the Standing Committee of the National People’s Congress, will require power grid managers to purchase resources from renewable energy sources by 2006.
It also included funding for renewable energy development, tax breaks for renewable energy projects, and incentives for oil companies to sell biological fuels, all aimed at reducing China’s dependence on fossil fuels, and reverse the trend for power shortages and ecological damage caused by industrial development.
The law followed China’s pledge at Bonn’s 2004 renewable energy conference to increase renewable energy generating capacity to 10% of total (or around 60 giga-watts) by 2010.
Beijing Greenpeace energy advisor Yu Jie commended the move.
“China could and should be a world leader in renewable energy development. If the definition of renewables and the details are right, then the international community will get behind China and support its ambition to become an international clean energy powerhouse,” Yu said.
