State entities are drafting a law which will make it compulsory for power grid companies to buy electricity generated by renewable energies, such as water, wind, solar, biomass, geothermal and marine-based power, and all end users will share the costs, according to Li Junfeng, secretary-general of the Chinese Renewable Energy Association.

The draft law is now being circulated among ministries and big State-owned corporations for review.

A revised draft will be submitted to the National People's Congress Standing Committee this month for discussion, Li told China Daily.

With approval, the draft law will be submitted to the Standing Committee of the National People's Congress for examination.

The law, which Li hopes will be passed before May next year, has been open to the international community for advice and reference.

In June this year, a special conference was held to collect international opinions. It is also accessible on the Internet.

"We have spent a lot of time and energy learning from the successes and failures of our partners in Europe and around the world. We believe this law can start a renewable energy revolution in China," Li said.

China has been slow to develop renewable energies because they are more expensive than conventional energy sources.

For example, it takes 0.35 yuan (4 US cents) to generate 1 KW/H of electricity from coal while wind-generated electricity costs about 0.50 to 0.60 yuan (6 to 7 US cents) per KW/H.

However, sharp increases in energy demands leave China no other choice but to speed up the exploration of renewable energy.

Last year, China's gross energy consumption reached the equivalent of 1.68 billion metric tons of coal, an increase of 13 per cent over 2002.

"Soaring oil imports, wild fluctuations in international oil prices, the mounting costs of extreme weather events and heightened concern over energy security mean that

China's commitment to renewables at this time is crucial," warned Steve Sawyer of Greenpeace International, during a four-day Forum of Wind Energy held earlier this month in Beijing.

On June 30 of this year, the State Council approved a significant energy policy document - the Outline of China's Medium and Long-term Energy Development Programme (2004-2020).

"The potential to increase renewable energy production in is vast," Li said. "Renewable energy is playing a growing role in the Chinese energy supply and has become a significant future energy source."

According to Li, China's goal to develop renewable energy is to increase its installed renewable energy generating capacity to 60 gigawatts by 2010, about 10 per cent of the total power capacity, and 121 gigawatts by 2020, 12 per cent of the total.

Li said China's energy makeup also needs restructuring. China now depends too heavily on coal, which takes up of 67.1 per cent of the total consumption. Oil accounts for 22.7 per cent with an imported amount of 970 million tons.

At present, renewable energy only accounts for 5 to 6 per cent of China's total power capacity.

Environmental deterioration is another impetus to accelerate the exploration of renewable energy.

"The impacts of climate changes on China are truly frightening, demanding urgent action.

"More than 60 per cent of Chinese glaciers are anticipated to disappear by 2050, threatening the fresh water supply for more than 250 million Chinese," said Yu Jie, director of Greenpeace's Beijing Office.

The Outline of China's Energy Programme states clearly the government will "enhance environ-mental protection and strive to reduce the impact of energy production and consumption on the environment."

China's legislation on renewable energy is certainly not an expedient measure to solve the problem of power shortage but more forward-looking. We are now considering a secure and sustainable energy supply after 2020.

By 2020, China's gross energy consumption is estimated to reach 3 billion metric tons of coal equivalent per year.

2004-10-21, Vol 20, No 7655