Supporting the Construction of Renewable Generation in EU and China: Policy Considerations: Joint Statement Report Series, #1
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About this ebook
his report was prepared by
Monique Voogt, SQ Consult BV, and
SHI Jingli and ZHONG Caifu, Energy Research Institute of National Development and Reform Commission
LEGAL DISCLAIMER
The information and views set out in this report are those of the author(s) and do not necessarily reflect the official opinion of the European Union, the China National Energy Administration or ECECP. Neither the European Union nor China National Energy Administration nor ECECP can guarantee the accuracy of the data included in this study. Neither the European Union, China National Energy Administration, ECECP nor any person acting on their behalf may be held responsible for the use, which may be made of the information contained therein.
© 2020 European Union. All rights reserved.
English editing: Helen Farrell, Chinese editing: CHI Jieqiao
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Supporting the Construction of Renewable Generation in EU and China - EU-China Energy Cooperation Platform Project
This report was prepared by
Monique Voogt, SQ Consult BV, and
SHI Jingli and ZHONG Caifu, Energy Research Institute of National Development and Reform Commission
EU-China Energy Cooperation Platform (ECECP)
Website: http://www.ececp.eu
E-mail: info@ececp.eu
EU-China Energy Cooperation Platform was launched on 15 May 2019, to support the implementation of activities announced in the Joint Statement on the Implementation of EU-China Energy Cooperation
. The overall objective of ECECP is to enhance EU-China cooperation on energy. In line with the EU’s Green Deal, Energy Union, the Clean Energy for All European initiative, the Paris Agreement on Climate Change and the EU’s Global Strategy, this enhanced cooperation will help increase mutual trust and understanding between EU and China and contribute to a global transition towards clean energy on the basis of a common vision of a sustainable, reliable and secure energy system. ECECP is implemented by a consortium led by ICF, jointly with Energy Research Institute of National Development and Reform Commission and China Energy Conservation and Environment Protection Consulting; policy steering is by the EU (DG ENER) and the China National Energy Administration.
LEGAL DISCLAIMER
The information and views set out in this report are those of the author(s) and do not necessarily reflect the official opinion of the European Union, the China National Energy Administration or ECECP. Neither the European Union nor China National Energy Administration nor ECECP can guarantee the accuracy of the data included in this study. Neither the European Union, China National Energy Administration, ECECP nor any person acting on their behalf may be held responsible for the use, which may be made of the information contained therein. More information on the ECECP is available on the Internet (http://www.ececp.eu)
© 2020 European Union. All rights reserved.
English editing: Helen Farrell, Chinese editing: CHI Jieqiao
FOREWORD
As the largest developing country in the world, with a population of nearly 1.4 billion, China consumes more energy than any other country. It is now determined to develop a green economy, pushing for sustainable economic growth within the red-line environmental limits.
Yet economic growth is not possible without a fundamental transformation of the energy sector. The four revolutions and one cooperation
called for by President Xi Jinping aim to transform both energy consumption and energy supply, develop new clean technologies and strengthen close international cooperation on energy security.
The direction for the revolution is also clear. China will build a clean, low-carbon, safe and efficient energy system with a strong emphasis on energy security. President Xi Jinping stresses that low-carbon energy system directs human future
and emission reductions are key to reach the global goals set by the Paris agreement.
Renewable energy is one of the key technologies in the energy system of the future. China introduced a Renewable Energy Law in 2005, and since then the promotion of wind and solar energy has been a cornerstone of China's energy strategy. China and Europe have been frontrunners in the massive deployment of these technologies, and in the huge cost reductions the world has experienced in the past decade. Many wind and solar power projects are already competitive with fossil fuel projects; in the coming years renewable energy is set to be the cheapest global energy solution.
There remain, however, a number of challenges which could hamper the future deployment and integration of renewable energy. Two of the three reports from ECECP, Supporting the construction of renewable generation in the EU and China
and Integration of variable renewables in the energy system of the EU and China
, highlight the challenges ahead and offer possible solutions as country leaders weigh up the next step forward in the transition to low-carbon energy systems. Many of the lessons already learnt are similar and relevant both to China and the EU, although future measures must be tailormade to the specific Chinese and European contexts. Investors require a stable policy framework, clear and ambitious targets for deployment and risk-mitigation. At the same time, power system flexibility and efficient power market design, with a level playing field for all technologies, are important prerequisites for the integration of renewable energy into the power systems.
These reports are important milestones in EU-China energy cooperation. Policy decision makers should study and learn from the experiences from the two frontrunners. The lessons learnt may also inspire other countries and regions to accelerate the development and integration of renewable energy in the drive towards a global low-carbon economy.
WANG ZHONGYING
Director General Energy Research Institute of NDRC
FOREWORD
In China, the installation and utilisation of hydropower and more recently PV and wind power have been increasing year on year. Although renewable energy sources (mainly PV and wind) have achieved double digit growth, their share in overall consumption, apart from hydropower, is still negligible. China’s energy system is still dominated by coal (accounting for 57% of energy use in 2019). China is now the world’s largest market for wind and solar power, yet non-electric renewables, mainly from biomass fuels, are still at the very early stage, with no clear pattern of development.
China and Europe are together struggling to manage the transition to green energy. The European