CRS Compares U.S.-China Green Energy Policies
The Congressional Research Service has issued a report entitled “China and the United States -- A Comparison of Green Energy Programs and Policies.”
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China Has Ambitious Targets, Legislation to Advance Renewable Energy
CRS states that China essentially functions as a "command and control" economy, where the national government owns or controls many of the country's industries and enterprises, and sets goals for economic development. The government has set ambitious targets for developing its non-hydropower renewable energy resources with a major push of laws, policies, and incentives in the last few years, particularly in the wind power and solar photovoltaic power sectors.
The key piece of legislation in recent years for advancing renewable electricity in China is the Renewable Energy Law of 2005. The law was designed to "promote the development and utilization of renewable energy, improve the energy structure, diversify energy supplies, safeguard energy security, protect the environment, and realize the sustainable development of the economy and society."
Renewable energy is subsidized by a fee charged to all electricity users in China of about 0.029 cents per kilowatt-hour (kwh). The fee was originally based on the incremental difference between coal and renewable energy (estimated in China at $0.044 to $0.059 per kwh), and goes to the companies which operate the electricity grid and must buy renewable power from project developers.
U.S. Does Not Have National Policy in Place, Legislation Pending
In contrast, the U.S. has largely a market-driven economy. Some argue that the U.S. does not have a comprehensive national policy in place for promotion of renewable energy technologies, with some observers saying that the higher costs of renewable electricity are not conducive to market adoption.
However, pending legislation in the 111th Congress contains provisions which could serve to increase power generation from renewable energy by establishing market drivers (such as a national renewable electricity standard) which could catalyze U.S. renewable electricity development.
Goal to Increase Renewable Energy Apply to Both U.S. and China
CRS states that the reasons for increasing the use of renewable energy are diverse, and include energy security, energy independence, cleaner air, and more recently anthropogenic climate change, sustainability concepts, and economic development. Such goals could reasonably be said to apply both to the U.S. and China.
(Report dated 06/14/10)