China enjoys renewables bonanza

China is poised to "leapfrog" many developing nations in its adoption of renewable energy technologies by meeting, or even exceeding, its target to generate 15 per cent of its energy from renewables by 2020.

That is the prediction of a new report from think-tank the Worldwatch Institute that argues that China could generate over 30 per cent of its energy from renewables by 2050 if it continues with its current commitment to diversify its energy supply.

The report, entitled Powering China's Development, argues that while concerns remain about the soaring levels of Chinese pollution, there are signs that it could reverse the trend. It argues that only Germany will invest more than the $10bn China will spend on expanding its renewable energy capacity this year, and predicts that with wind and solar capacity doubling in 2006, the country will overtake European, Japanese and North American manufacturers within the next three years.

"A combination of policy leadership and entrepreneurial savvy is leading to spectacular growth in renewable energy, increasing its share of the market for electricity, heating and transport fuels," said report author Eric Martinot. " China is poised to become a leader in renewables manufacturing, which will have global implications for the future of the technology."

Highlighting the scale of the Chinese renewables revolution, the report predicts that by the end of the year China will be home to four major manufacturers of wind turbines, another six foreign subsidiary manufacturers, and more than 40 firms developing prototypes and aspiring to produce turbines commercially.

However, the report also concludes that the rapid diversification of China's energy is essential if it is avoid environmental disaster, noting that coal now provides 80 per cent of China’s electricity and has led to serious environmental and public health problems.