With almost 10 million square kilometers of territory China has a wide range of climate, largely determined by two weather systems that divide the country east to west. Vegetation adapts to the climate and is one of the richest in the world..

China covers an area of 9.6 million square kilometers and has an immense diversity in climate and vegetation. More than 1.2 million square kilometers are made up of sand and rock-strewn deserts, whereas another 2.1 million square kilometers have continuous permafrost, with glaciers covering nearly 60,000 square kilometers. Only an estimated 1.7 million square kilometers are arable land.

China may be divided into two halves roughly along the 102? longitude meridian because, generally speaking, two weather systems exist. The comparatively low areas to the east of this meridian are dominated by a temperate, dry or subtropical, humid monsoon climate, whereas the highlands to the west have a significantly drier continental climate. Apart from factors such as latitude and elevation, deviations in temperatures and precipitation within and between regions are influenced by topographical features. Mountain ranges, plateaus, river valleys, and proximity to the ocean all have an impact on local weather conditions.

East of the 102? longitude meridian, the division between the temperate north and the subtropical south approximately follows the Qinling Mountains in southern Shaanxi Province and the Huai River, which traverses southern Henan and central Anhui and Jiangsu provinces. North of this line the January mean temperatures decrease from zero to below ?20? C in the northeastern province of Heilongjiang, whereas Hainan Island in the far south enjoys a tropical climate, with annual average temperatures between 22? C and 26? C. The July mean temperature for the same area, with an elevation below 1,000 meters above sea level, shows little difference from north to south. Annual precipitation decreases from more than 2,000 millimeters in the southeastern coastal provinces to 500–750 millimeters in the northeast. The rainy season follows the southeastern summer monsoon, which lasts from April to September in the southeast, whereas it is considerably shorter in the northeast, lasting only through July and August.

Tropical China includes the Leizhou Peninsula of southern Guangdong Province, Hainan Island, parts of Taiwan, and the five thousand islands and islets of the South China Sea, which covers an area of 2.3 million square kilometers south of the Chinese continent. The largest concentrations of islands are the largely uninhabited and disputed Paracel and Spratly islands. The South China Sea has a monsoon climate, with northern winds in winter and southern winds with high precipitation in summer. Annual temperatures average between 22? C and 26? C. Hainan has an annual precipitation of 1,600 millimeters, which increases with the elevation. Except for February and March the islands of the South China Sea and Hainan are repeatedly hit by typhoons that may last for several days. Situated between the East China Sea and the South China Sea, Taiwan is on the border of the subtropical and tropical zones. The eastern plains have an annual average temperature of 22? C, which decreases with the elevation in the mountainous areas in the western part of the island. The July mean temperature of the plains is 28? C, whereas peaks above 3,000 meters may be covered in snow during winter. Annual precipitation varies greatly around the island, from 2,000 millimeters in the south to 6,000 millimeters in the northeast, where the city of Jilong records 214 rainy days a year. In the south rain is more frequent during the summer months, when it is often accompanied by devastating typhoons.

Subtropical Monsoon Climate

The roughly 25 percent of China situated to the east of the Tibetan Plateau and south of the Qinling range and the Huai River has a subtropical monsoon climate with long, hot summers and short, mild winters. The area may be divided into three regions: the Yunnan-Guizhou Plateau and the Sichuan Basin in the west, the river plains along the Yangzi (Chang) and Zhujiang (Pearl) rivers, and the mountainous territories of Zhejiang, Fujian, and southern Jiangxi in the east.

The Yunnan-Guizhou Plateau rises from 1,200 meters above sea level in western Guizhou to about 2,000 meters in northern Yunnan. It is a rugged limestone terrain where the subtropical monsoon climate, combined with the high altitude, means pleasantly warm summers, with July average temperatures between 18? C and 28? C in the low-lying parts in the north and 19? C and 22? C in the higher south. Winters are mild, with January mean temperatures between 3? C and 10? C. As a consequence of the great variation in altitude, especially in Yunnan, local climatic conditions may vary considerably. Annual average precipitation in the Guizhou area is 1,200 millimeters, unevenly distributed over valleys and mountain slopes, and hailstorms and droughts are common. Whereas up to 50 percent of the rainfall in Guizhou occurs during the summer months, in Yunnan the rainy season from May to October accounts for 85 percent of the annual average of 1,000 millimeters, and spring droughts are common. The regions bordering on Laos and Myanmar (Burma) have the most rain, with up to 2,000 millimeters annually.

The Sichuan Basin, which occupies the eastern part of Sichuan Province, has an elevation up to 700 meters above sea level and is surrounded by high mountains. The subtropical climate gives mild winters, with January mean temperatures around 6? C, and hot summers, with average July temperatures of 27? C. The average annual precipitation varies from 600 millimeters to 1,200 millimeters and as high as 1,500 millimeters in the Qingyi River valley in the far west of the basin. The rainy season is in late summer and autumn. The plateau of the western half of Sichuan rises to 4,500 meters above sea level, with peaks such as Mount Gongga reaching to 7,556 meters, more than 6,000 meters above the valley of the nearby Dadu River. Here the climate varies greatly between mountains, with cold and dry weather throughout the year and subtropical valleys with warm winters and cool summers.

The plain along the Yangzi River, which includes the southern parts of Hubei, Anhui, and Jiangsu and the northern parts of Hunan and Jiangxi provinces, has a subtropical climate and four seasons with short springs and autumns. Average January temperatures are between 3? C and 9? C, and July temperatures are between 27? C and 30? C. Extreme lows below ?18? C have been recorded in Wuhan, which is otherwise known as one of the “four furnaces” (together with Chongqing, Changsha, and Nanjing) because of an average July temperature of more than 37? C. Half of the annual precipitation of 700–2,000 millimeters falls between April and June, often followed by droughts well into September. The subtropical plain drained by the Zhujiang River and its tributaries, which flows through the Guangxi Zhuang Autonomous Region and Guangdong Province, have annual mean temperatures up to 22? C. Large parts of Guangdong and Guangxi are above 1,000 meters above sea level and therefore cooler. The river plain has a July average temperature of 27–29? C, whereas January mean temperatures range between 6? C and 15? C. Annual precipitation varies from 1,250 millimeters to more than 2,500 millimeters, with 80 percent falling between April and September.

Well-Defined Seasons

The hilly terrain of the eastern coastal provinces of Zhejiang and Fujian and southern Jiangxi farther inland has four well-defined seasons and a typical humid subtropical monsoon climate, with average temperatures reaching between 27? C and 30? C in July and between 6? C and 9? C in January. Several mountain ranges, of which the highest is the Wuyi on the border between Jiangxi and Fujian, run parallel with the coastline and are traversed by rivers, resulting in many ravines and a highly serrated landscape. Local variations in weather conditions depend on elevation and location on leeward and windward slopes of the ranges. Extreme low temperatures in the mountains go down to ?9? C, whereas the coastal valleys record summer temperatures well above 40? C. The annual precipitation varies greatly, from 900 to 1,500 millimeters on the coastal areas of Fujian to 2,200 millimeters in the mountains, with 40–50 percent falling in spring and early summer, followed by frequent typhoons and torrential rain from July to September.

The area north of the Qinling range and the Huai River is in the temperate zone; the low plains and the coastal areas in the east have a monsoon climate with hot, wet summers and cold, dry winters, and to the west the loess (an unstratified, loamy deposit) plateau has a predominantly continental climate. The Gulf of Bohai and the Yellow Sea (Huang Hi) have January mean temperatures that vary from ?4? C to 3? C from north to south, and the July mean temperatures are between 26? C and 29? C. In the dry, cold winters Bohai and the inner Yellow Sea freeze over, and ports may be ice-locked for up to eighty days. The annual average precipitation increases from 570 millimeters in the Bohai area up to 1,200 millimeters in the southern parts of the Yellow Sea. In the north up to 75 percent of the annual precipitation falls in July and August, compared to 40–60 percent in the south. The northeastern plain, which incorporates Liaoning and Jilin provinces, has average January temperatures ranging from ?5? C near Bohai to ?20? C in the north, whereas average July temperatures are between 20? C and 26? C. Temperatures may reach as high as 38? C in summer. Annual rainfall in the northeastern plain averages 1,000 millimeters, with up to 80 percent falling between May and September. Farther north in Heilongjiang Province and in the mountains, where the continental climate interferes with the monsoon, winter temperatures are significantly lower, with record lows below ?50? C, and annual temperatures may differ by up to 40? C. Annual precipitation varies between 600 millimeters in the lowlands and 1,000 millimeters on windward slopes of the mountains and is largely concentrated in the summer months.

The Huang (Yellow) River plain covers the greater parts of Hebei, Henan, Shandong, Anhui, and Jiangsu provinces. In Hebei the annual mean temperatures increase from 1? C in the mountainous north to 13? C in the south, and the average January temperatures are ?21? C and ?1? C, respectively, with extreme lows down to ?43? C in the north. July mean temperatures range from 18? C in the north to 27? C in southern Hebei, where summer temperatures above 40? C are common. Up to 80 percent of the annual precipitation of 350–750 millimeters falls during the three summer months, with little or no rain on the leeward slopes of the mountains. The remaining part of the Huang River plain has a more uniform climate, with four well-defined seasons. Average winter and summer temperatures vary only slightly, ?2? C to 3? C in January and 24? C to 29? C. The northern plain in eastern Henan and Shandong has significant higher differences between absolute high and low temperatures, and torrential rainstorms alternate with periods of drought. The annual precipitation averages 600–900 millimeters..

Huang River

The severely eroded loess plateau, which covers southern Gansu, Ningxia, Inner Mongolia, Shaanxi, Shanxi, and the western part of Henan, is drained by the Huang River. Except for the southern tips of Gansu and Shaanxi the plateau has a temperate continental climate, and it is considerably colder in Ningxia and Inner Mongolia in the north, with average January temperatures from ?30? C to ?10? C, as opposed to ?3? C to 3? C in the south. July temperatures average between 15? C and 26? C in the north and 20? C and 28? C in the south, where summer temperatures above 40? C are frequent. The southern plateau receives 500–860 millimeters of rain a year, 60–70 percent of which falls between July and September. The annual precipitation decreases from south to north and east to west to as little as 100–200 millimeters in Inner Mongolia.

The topographical features of western China are arguably the most extreme on the planet, with the world’s highest mountain range and plateaus, deep river canyons, huge deserts, and depressions below sea level next to snow-capped peaks rising to 5,400 meters. The area consists of the autonomous regions of Tibet and Xinjiang Uighur in the southwest and northwest, respectively, the former covering 1.2 million square kilometers and the latter almost 1.7 million square kilometers. Qinghai Province and the northwestern parts of Gansu add another 1 million square kilometers to this diverse territory, which has a distinct continental climate with marked differences between summer and winter and day and night temperatures. The climate ranges from warm temperate in the comparatively low-lying areas of Xinjiang and Gansu to alpine in the southern Tibetan Plateau, which is situated up to 5,000 meters above sea level. Except for some mountain regions and the valleys in southeastern Tibet, the annual precipitation in the greater part of western China is below 250 millimeters and virtually nonexistent in some parts of the deserts of Xinjiang. In southeast Tibet, which is affected by the southwestern monsoon, up to 90 percent falls in the rainy season between June and September, whereas the annual rainfall in the north is evenly distributed throughout the year.

Xinjiang is divided by the Tianshan range into the large Tarim Basin in the south and the smaller Junggar Basin in the north. The Tarim Basin, which is separated from the Tibetan Plateau in the south by the Kunlun and Altun mountains, is dominated by the Taklimakan Desert. Whereas all of Xinjiang has a warm, temperate continental climate with hot days and cold nights, the temperature differences between north and south are significant. Average January temperatures in the south vary between ?8? C and ?10? C, as opposed to ?15? C and ?20? C in the north. Winter temperatures in the northeast may drop below ?50? C. July average temperatures in the south are between 25? C and 27? C and only slightly lower in the north. The hottest place in Xinjiang (and China) is the Turpan Depression just south of the Tianshan range, which has an elevation of 154 meters below sea level and summer temperatures recorded as high as 48? C. Except for the Tianshan range, which may have an annual rainfall of 500 millimeters or more, the average in the north is between 150 and 250 millimeters and in the south as little as 50–100 millimeters. The Turpan Depression receives only 4 millimeters a year.

Alpine Continental Climate

The Qinghai-Tibetan Plateau has an alpine continental climate and average annual temperatures between ?8? C and 0? C, with many local variations. The slopes of the mountain ranges surrounding the plateau have distinct vertical climatic zones, with temperatures decreasing with increased elevation, whereas the river valleys in the south have an average annual temperature of 8? C and summers without frost. Average January temperatures vary between ?20? C and ?10? C, and the average July temperature is around 10? C. Fluctuations between day and night temperatures are considerable, and because of the high elevation weather conditions may change quickly during the day. The greater part of the plateau receives less than 300 millimeters of rain annually, whereas the valleys in the southeast may get as much as 2,000 millimeters. In the valleys rainfall often occurs at night, and 90 percent falls in the rainy season between June and September. Hailstorms and thunderstorms are common in summer. Winter and spring are characterized by strong winds. The high altitude of the plateau means that the percentage of oxygen in the air is only about 65 percent compared with that at sea level. The number of sunshine hours is higher than anywhere else in China, and ultraviolet radiation is intense.

Vegetation

The vegetation adapts to the climatic zones of the different latitude regions as well as the various altitude belts, and in terms of biodiversity (biological diversity in an environment as indicated by numbers of different species of plants and animals) the vegetation of China is one of the richest in the world. In addition to the factors determining weather conditions, vegetation depends on soil types and the extent to which humans have affected it by cultivation, deforestation, mining, and other practices. Little natural plant life has survived undisturbed in the eastern China plains, where cultural vegetation is dominant. In the northern temperate zone crops such as wheat, millet, corn, and soybeans are widespread, whereas rice is the major crop in the subtropical south.

About 12 percent of the total area of China is covered with forests, and about 50 percent of that consists of coniferous forests, which may be found in all climate zones. Cold, temperate or boreal coniferous forests are common in the northeast and on mountain slopes throughout China and include species such as pine, fir, spruce, and larch. Spruce and fir are especially numerous in the mountainous regions in the southwest, and together with larch they constitute an important source of raw materials for the timber industry. Coniferous forests of warm, temperate zones consist of various types of pine and are mainly found as plantations in northern China and on the lower mountain slopes of northern Sichuan and southern Shaanxi. Subtropical and tropical zones are characterized by a great diversity of local coniferous forests, many of which contain species endemic to China and even species that were believed to be extinct. The Dawn redwood (Metasequoia glyptostroboides) was known only from fossils until it was discovered by biologists in the 1940s in Sichuan and Hubei. In addition to pine these forests include fir, cypress, and cedar; for example, the Chinese cedar (Cryptomeria fortunei) may reach a height of 73 meters and is among the tallest trees in China.

Broad-leaved forests account for about 47 percent of China’s forested area, whereas only about 3 percent are mixed coniferous and deciduous forests; the latter are mainly limited to a few regions in the northeast and some small forests in subalpine mountain areas of southern China. Deciduous broad-leaved forests are common in mountainous regions in all climate zones, and the most important species are oak, beech, alder, birch, and poplar. Many types of oak and birch forests are found, and a larger variety of species, such as aspen, maple, willow, and elm, may be observed in beech forests. In the subtropical zone with high precipitation the evergreen broad-leaved forests, which are characterized by an overwhelming diversity of species, are widespread. Dominant species vary greatly, and in northern areas of the subtropical zone and at altitudes up to 2,000 meters mixed deciduous and evergreen broad-leaved forests are common. Generally speaking, the broad-leaved forests of China are seriously threatened by deforestation, which turns large forest areas into plains or substitutes them with new conifer or bamboo plantations.

Mangrove forests are found along the southern coast and on the island of Hainan, and tropical rain forests stretch roughly from the coasts of Guangdong Province westward until reaching an elevation of about 1,000 meters in southeastern Tibet. Although they are comparatively small, the richness and diversity of species in this area exceeds those of all other regions. In spite of increasing awareness of the need for conservation and the establishment of nature reserves, the areas covered with tropical rain forests are still under pressure from advancing civilization and exploitation by monocultural plantation operations.

The Tibetan Plateau is a treeless wetland and steppe (vast, usually level and treeless tracts in southeastern Europe or Asia), which gradually turn into an alpine desert in the higher and more arid northern part, where elevation is above 5,000 meters. On the southern and eastern edges and in the deep river valleys forests grow in distinct vertical climate belts. Although the greater part of Xinjiang is characterized by sand deserts, salt marshes, and arid grassland, some irrigation-based oasis agriculture produces wheat, corn, and fruit. The forested slopes below the alpine tree line of the Altay and Tianshan mountains are mostly populated with larch, spruce, and fir.

Bent NIELSEN

Further Reading

Chapman, G. P., & Wang Yinzheng. (2002). The plant life of China: Diversity and distribution. Berlin: Springer-Verlag.

Domros, M.., & Peng Gongbing. (1988). Climate of China.. Berlin: Springer-Verlag.

Editorial Board of Vegetation Map of China. (2001). 1:1000,000 vegetation atlas of China.. Beijing: Science Press.

Forest Ministry of China. (1990). Atlas of forestry in China. Beijing: China Surveying Press.

Fu Congbin, Zhihong Jiang, Zhaoyong Guan, & Jinhai He. (Eds.). (2008). Regional climate studies of China. Berlin: Springer-Verlag.

Fu Li-Kuo & Chin Chien-Ming.. (Eds.). (1992). China plant red data book: Rare and endangered plants. Beijing: Science Press..

Hu Shiu-ying. (2003). Food plants of China.. Hong Kong: Chinese University Press..

Keng, Hsuan, Hong De-Yuan, & Chen Chia-Jui.. (1993). Orders and families of seed plants of China. Singapore and River Edge, NJ: World Scientific Publisher.

Xu Fengxiang. (1993). Tibetan vegetation of China.. Nanjing, China: Jiangsu Science & Technology Publishing.

With increasing energy demand and limited conventional energy resources, China is recognizing the need to develop renewable energy. In 2007, the consumption of renewable energy accounted for 8.5 percent of the country’s total primary energy consumption. In order to improve renewable energy development, the government has taken a series of countermeasures and has issued some related regulations.

China is one of the largest energy production countries in the world; it is also one of the largest energy consumption countries in the world. In 2007, China’s total commercial energy production reached 2.35 billion tce (ton-of-coal equivalent) among which coal production accounted for 76.6 percent, crude oil 11.3 percent, natural gas 3.9 percent, the aggregation of nuclear power, hydropower, and wind power generation 8.2 percent. In terms of consumption, in 2007, China’s aggregate energy consumption reached 2.66 billion tce, 7.8 percent more than in 2006. Of the total consumption, coal accounted for 69.5 percent, while petroleum accounted for 19.7 percent, natural gas accounted for 3.5 percent, the aggregation of nuclear power, hydropower, and wind power accounted for 7.3 percent (NBSC, 2008). The net imported petroleum reached 184.8 million tons in 2007; the rate of dependence on import reached 50 percent. As a result of increasing energy demand, the share of coal in total energy consumption was increased by 0.1 percent from 2006 to 2007.

The United States is the world's largest energy producer, consumer, and net importer. It also ranks eleventh worldwide in reserves of oil, sixth in natural gas, and first in coal (EIA, 2008c). In 2007, primary energy production in the United States reached 2.58 billion tce: coal accounted for 32.8 percent, natural gas 27.7 percent, crude oil 15 percent, NGPL (Natural gas plant liquids) 3.4 percent, nuclear electric power 11.7 percent, renewable energy including hydropower, geothermal, solar/PV, wind and biomass only 9.5 percent. Primary energy consumption reached 3.66 billion tce: coal accounted for 22.4 percent, natural gas 23.3 percent, petroleum 39.2 percent, nuclear electric power 8.3 percent, renewable energy including hydropower, geothermal, solar/PV, wind and biomass 6.7 percent (EIA, 2008b). The United States imported about 58 percent of the petroleum, which includes crude oil and refined petroleum products, that it consumed during 2007 (EIA, 2008a).

Challenges and Opportunities

China is facing many challenges concerning the production and use of traditional energy, which in turn are yielding great opportunities for expanding sources of renewable energy (Asif and Muneer, 2007). Energy, on one hand, is an important foundation for the development of China’s socio-economy. Since implementing the reform and expanding market policies in the early 1980s, the nation’s energy sector has made great achievements. Over past three decades, China’s energy supply has generally kept pace with the demands of the growing national economy.

The long-term energy bottleneck issues, on the other hand, have always existed in China. Since the sixteenth Chinese Communist Party Congress (CCPC) put forward the goal of building a well-off society, the initiative of all communities to promote economic development rose to an unprecedented level, and the pace of national economic development accelerated. As a result, since 2002, energy supply-and-demand problems have emerged again. For example, the coordination between the transportation, supply, and the demand for coal, electricity, and oil have become a great challenge. The phenomenon of “limited power supply” is occurring over large areas around the country owing to the shortage of coal power. Oil imports have increased greatly. It is widely acknowledged that the energy shortage has become a critical factor, limiting the nation’s socioeconomic development. In the long term, the energy issue will be one of the most serious problems facing China.

In terms of the current energy supply and demand, China is facing three main problems:

1. Extremely limited energy resources: China’s total proven reserves of conventional energy sources is about 820 billion tce. Its proven remaining exploitable reserves are 150 billion tce, about 10 percent of proven remaining exploitable reserves in the world. In terms of average energy consumed per capita, the China uses only 70 percent of the world average, while the petroleum consumed per capita is 10 percent of the world average, and natural gas consumed per capita is 5 percent of the world average. China’s hydropower resources are relatively abundant. Both the total theoretical capacity and economically exploitable capacity of hydropower are the largest in the world. It should be noted, however, that the exploration of hydropower resources is tremendously restrained due to the environmental impacts, floods loss, migration, and many other issues.

2. Dependence on coal, which is causing serious environmental problems: China is the world’s largest coal consumer, accounting for 40 percent of world consumption in 2007 (EIA, 2008b). Coal meets nearly 70 percent of China’s primary energy needs. At present, the coal-dominated energy structure has caused substantial impacts on the ecological environment. China ranks second in the world to the United States in carbon dioxide emission, while China’s emission of sulfur dioxide is estimated to be first in the world. Clean-coal power-generation technologies must be developed to gradually reduce the proportion of coal consumption in the overall energy structure.

3. Low technical levels in energy utilization and low efficiency of energy use: China’s fast economic growth is, to a large extent, dependent upon the great amount of consumption of various physical resources. The energy consumption per unit output in China is clearly much higher than international advanced levels. Coal consumption from coal-fired power plants per unit output, for examples, is 22.5 percent higher than other advanced levels in the world.

China, of course, will have a continuing thirst for energy. The World Energy Outlook 2007 published by the International Energy Agency forecasts that total energy consumption in China in 2015 will be about 2.85 billion toe (tons of oil) and about 3.82 billion toe in 2030 (IEA, 2008). In addition to restructuring its economic growth, increasing energy efficiency, and building an energy-conserving society, special attention continues to be given to the development and use of China’s abundant, inexhaustible, and environmentally friendly renewable energy resources.

Development

In 2007, the consumption of renewable energy in China totaled 220 million tce, accounting for 8.5 percent in the total primary energy consumption (Zhao et al., 2008). But China has abundant renewable energy resources, and the potential for developing and utilizing these resources is very great. The main types of renewable energies in China include hydropower, wind power, biomass energy, solar energy, geothermal energy, ocean energy, and others. Despite disagreement about hydropower internationally, it is widely agreed that small hydropower (SHP) is a valid source of renewable energy. In the case of China, those hydropower stations with a capacity of less than 50 megawatts fall into the SHP category.

China has the theoretical potential for ranking number one in small hydropower development, with resources are located in 1,600 counties (or cities) across thirty-one of China’s provinces (and provincial level municipalities, excluding the Taiwan, Hong Kong, and Macao). Small hydropower resources are particularly plentiful in southwest China, where over 50 percent of the total SHP resource base is located. China’s technology for hydropower station design, installation, and operation is quite mature, and it has installed more than 80 percent of its hydropower capabilities, with roughly a third coming from small hydropower sources (Shi, 2008), (REN21, 2008).

Wind resources are particularly rich in northeastern China, northern China, northwestern China, and the eastern coastal regions. By the end of 2007, Germany had the largest wind power capacity in world, while China ranked fifth, with over 158 wind power farms on the mainland. The manufacturing technology and capabilities of China’s wind power equipment have also greatly improved, as has the volume of their production.

China enjoys the availability of plenty of solar energy. Most of China’s land area is located south of 45°N latitude. Over two-thirds of China’s land area receives over 2,200 hours of sunshine per year, with a total solar radiation received by China’s land areas annually being equivalent to 1.7 trillion tce. At present, solar energy is mainly applied in two areas, solar thermal and photovoltaic (PV). By the end of 2007, China had installed PV power to supply electricity for residents in remote rural areas and for transport and communication stations.

In recent years, China’s solar water heater (SWH) industry has been developing very quickly and has already become quite competitive. China’s export of solar water heaters, boosted by demand in the international market, also rose. In 2007, China’s export value of solar water heater increased by 28 percent from 2006 to equal US$65 million (CBI, 2008).

Biomass energy resources mainly consist of wastes from agriculture and forest industries, industrial wastewater, animal and human manure, and municipal solid wastes. China is a major agricultural producer, and biomass wastes from agriculture are widely distributed, especially those from crop stalks. Fuel-wood forests, timber-processing industries, and other forestry sectors generate biomass waste of over 600 million tons annually, of which 300 million tons can be used in energy applications. The industrial wastewater and manure from livestock and poultry farms are a substantial source of biogas. China’s cities are predicted to produce about 210 million tons of municipal solid waste by 2020. Once land-filled and waste-combustion power generation technologies are implemented, the annual energy produced could be 15 million tce. According to preliminary estimates, the total exploitable annual capacity of biomass energy in China is 500–800 million tce from now to 2030 (NDRC, 2007).

China is currently undertaking research experiments for the production of solid and liquid fuels from biomass. Considering the technology for compressed biomass solid fuel that is under research and developed at Tsinghua University, solid biomass fuels combined with advanced combustion technologies hold great promise in satisfying the household energy requirements of rural people, making full use of biomass resources, as well as in improving living conditions in rural areas.

Geothermal resources have already played a positive role in supplying heat and hot water in China. Geothermal pump technology is considered to have a great future in heating systems for buildings.

In addition to hydropower, wind power, solar energy, biomass, and geothermal energy, other renewable energy resources include ocean energy and hydrogen energy. Ocean energy in China is currently focused on tidal power generation. Due to the limitations of resources and high costs, its use is not widespread.

Incentives

Realizing the great importance and huge potentials of renewable energy, the Chinese governments have implemented a series of policies to promote sustainable development. At the level of macro-policies, the National People’s Congress had already promulgated China’s Renewable Energy Law by February 2005. Critical systems were established in the law: (1) a system of government responsibility, requiring the government to formulate development targets and strategic plans, and to guarantee measures for renewable energy; (2) a system of public cost-sharing (realized by a cost-sharing system of the grid), whereby all citizens will be required to share the extra costs associated with developing renewable energy; and (3) a system of punishment and reward, which was designed to encourage the entire society, particularly companies, to develop and use renewable energy, and has financially punished those companies and individuals that have not met the obligations set out for them in the law (NPC, 2005). In addition, some specific regulations, legislation, and standards to implement the law have been constituted. In particular, the medium- and long-term development plan of renewable energy in China was issued in 2007. Clearly, the legal system to develop renewable energy has built a preliminary foundation.

Some direct economic incentives have also been implemented to encourage the development of renewable energy industry in China. First, is the customs tariff relief. Customs duties on imported complete wind turbines are 6 percent, whereas duties charged on imported components of wind turbines is 3 percent. Second, some value-added tax (VAT) is waived. Currently, most renewable energy products are taxed at the full VAT value (unified VAT rate is 17 percent). The exceptions are rates of 13 percent for biogas generation, 8.5 percent for wind power, 6 percent for SHP, and 0 percent for municipal solid-waste power generation. A third incentive is loan savings. Discounted loans were aimed to support biogas projects, solar-thermal applications and wind-power generation technologies. The government offered a 50 percent discount on regular commercial bank-loan interest. In addition, the government made a limited number of low-interest loans available for SHP. Some wind companies have benefited from the discount loans for the first 1 to 3 years. Fourth, central authorities offered subsidies in research and development (R&D) and marketing demonstration, as well as some local subsidies for solar energy systems for homes and for small wind systems in rural regions.

In addition to the central governments incentives, local governments have also formulated their own preferable measures. For example, income tax from wind companies was waved for the first two years in Inner Mongolia, and from 50 to 200 yuan was subsidized to each home PV system or small wind turbine.

Obstacles

Ironically speaking, some barriers to renewable energy development have indeed existed in China. Although the Chinese government has issued some policies to promote the development of renewable energy over the past ten years, the share of renewable energy in the total primary energy consumption is still low. Breaking the barriers that obstruct renewable energy development in China will be significant to China’s energy future.

First, the government must apply some incentive measurements to promote renewable energy in its initial stage. At present, the policy system to support renewable energy such as wind energy, bio-energy and solar energy is imperfect; the incentive measure is not enough, the implementing of policies is poor, and policies are unconnected. The absence of effective investment and financing mechanisms greatly restrain the R&D processes. Owing to the characteristics of high cost, diffuse distribution, small-scale and discontinuous production, most renewable energy still lacks competitive capability in comparison with conventional energy technologies. Therefore, an integrated, powerful, stable, effective stimulus combined with incentive mechanisms based in law is necessary for further development.

Second, the market mechanism is imperfect. As a result of the above-mentioned characteristics and the absence of a definite long-term target to develop renewable energy, a continuous and stable demand for renewable energy in China has not yet emerged. The driving force of the market is so limited that technological innovation of advanced renewable energy has moved slowly. A few technologies, such as SHP and solar water heater, have to some extent, realized commercialization after years of improvement, though their market share is still very small compared to their entire potential and total energy demand. To further expand the market, there is a need to decrease the production cost and improve technology reliability.

Finally, the technology and industrial system is still fragile. Excluding hydropower, solar water heaters, and biogas, the investment in R&D in most renewable energy remains low, and China’s production capacity is inferior to that of developed countries. In addition, some key technology and devices have depended on imports for many years, such as the PV module production lines and large wind turbines. Moreover, there are no professional, accurate and integrated evaluation systems, and there is no quality control system. The human resource training system and technology service systems are imperfect due to the shortage of communication, and dissemination of information about renewable energy.

It is clearly expected that the development of renewable energy has stepped into a crucial phase in China. In next twenty years, whether renewable energy can be developed on an industrial scale will depends on support of further preferable policies and market expansion.

SHEN Lei, CHENG Shengkui, and XU Zengrang

Further Reading

Asif, M., & Muneer, T. (2007). Energy supply, its demand and security issues for developed and emerging economies. Renewable and Sustainable Energy Reviews 11, 1388–1413.

CBI. (2008). China solar water heater market report, 2008. Retrieved December 24, 2008, from http://www.chnci.com/reports/2008-05/200852985417.html

Energy Information Administration (EIA). (2008a). How dependent are we on foreign oil? Retrieved December 24, 2008, from http://tonto.eia.doe.gov/energy_in_brief/foreign_oil_dependence.cfm

Energy Information Administration (EIA). (2008b). International/Data. Retrieved December 24, 2008, from http://www.eia.doe.gov/emeu/international/contents.html

Energy Information Administration (EIA). (2008c). United States energy profile. Retrieved December 24, 2008, from http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=US

Energy Information Administration (EIA). (2007, December 10). World energy outlook 2007: China and India insights. International Energy Agency. Retrieved December 24, 2008, from http://www.iea.org/textbase/speech/2007/Cozzi_Bali.pdf

Energy Information Administration (EIA). (2008). Industrial report of new & renewable energy of China [2008 Zhongguo xin nengyuan yu ke zaisheng nengyuan chanye fazhan baogao.] China: Guanzhou.

National Bureau of Statistics of China (NBSC). (2008). China statistical yearbook 2008. Beijing: China Statistics Press.

Renewable Energy Network for the 21st Century (REN21). (2008). Renewables 2007 global status report. Paris: REN21 Secretariat and Washington, DC: Worldwatch Institute.

Shi, D. (2008). The institutes and outlook of China’s renewable energy development (Zhongguo ke zaisheng nengyuan fazhan xianzhuang yu zhanwang). Retrieved December 24, 2008, from http://www.counsellor.gov.cn/content/2008-10/25/content_1264.htm

Wang, Z. and Li, J. (2008a). Report of renewable energy industry of China 2007. Beijing: Chemical Industrial Press.

Wang, Z. and Li, J. (2008b). Report of renewable energy industry of China 2007 [Zhongguo ke zaisheng nengyuan chanye fazhan baogao 2007]. Beijing: Chemical Industrial Press.

Zhao, X., Wang, S. and Liu, Z. (2008). Renewable energy developed fast in China (Ke zaisheng nengyuan jinru kuaisu fazhan shiqi). Retrieved December 24, 2008, from http://news.xinhuanet.com/fortune/2008-09/21/content_10086374.htm