Identifier
Created
Classification
Origin
09BEIJING1521
2009-06-07 22:53:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Beijing
Cable title:
CHINA TO INTRODUCE GREEN ENERGY SUPPORT
how-toVZCZCXRO2587 PP RUEHCN RUEHGH RUEHVC DE RUEHBJ #1521/01 1582253 ZNR UUUUU ZZH P 072253Z JUN 09 FM AMEMBASSY BEIJING TO RUEHC/SECSTATE WASHDC PRIORITY 4358 INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 BEIJING 001521
SENSITIVE
SIPDIS
STATE FOR EAP/CM SFLATT/JHABJAN
STATE PASS USTR FOR STRATFORD, WINTER, MCCARTIN,
READE,
VENKATARAMAN, KEMP, MILLER, MALMROSE
DOC FOR MELCHER, SAUNDERS; LORENTZEN AND SHOWERS
(5130); HEIZNEN(6510)
E.O. 12958: N/A
TAGS: ECON EINV SENV CH
SUBJECT: CHINA TO INTRODUCE GREEN ENERGY SUPPORT
PLAN
This cable is Sensitive but Unclassified (SBU) and
for official use only. Not for transmission outside
USG channels.
UNCLAS SECTION 01 OF 02 BEIJING 001521
SENSITIVE
SIPDIS
STATE FOR EAP/CM SFLATT/JHABJAN
STATE PASS USTR FOR STRATFORD, WINTER, MCCARTIN,
READE,
VENKATARAMAN, KEMP, MILLER, MALMROSE
DOC FOR MELCHER, SAUNDERS; LORENTZEN AND SHOWERS
(5130); HEIZNEN(6510)
E.O. 12958: N/A
TAGS: ECON EINV SENV CH
SUBJECT: CHINA TO INTRODUCE GREEN ENERGY SUPPORT
PLAN
This cable is Sensitive but Unclassified (SBU) and
for official use only. Not for transmission outside
USG channels.
1. (SBU) Summary: China's National Energy
Administration (NEA) has announced it will soon
submit a support plan for the alternate energy
sector. Although specific details have not yet been
released, the plan will focus on more-efficient and
alternative energies--particularly wind and solar--
and an Embassy contact estimated that investment in
the new energy sector would reach RMB 4.5 trillion
by 2020. Although some industry experts predicted
the plan will turn China into a key market for solar
equipment, the plan appears to emphasize
domestically-available technology. End Summary.
Emphasis on New Energy Technology
--------------
2. (U) At a June 1 press conference, Vice Chairman
Liu Qi announced that NEA had completed a draft
"Development Plan for New Energy" and would soon
submit it to the National Development and Reform
Commission (NDRC) and the State Council for
approval. Liu explained that the government
considered development of "new energy" an important
economic development strategy and would greatly
increase government investment in the new energy
sector. Under the plan, improved technology would
lower costs and help industrialize the new energy
sector. Liu also emphasized that NEA would proceed
cautiously and consider possible risks in their
pursuit of alternative energy.
Plan to Focus on Wind, Solar, and Biomass
--------------
3. (U) The plan outlines development goals for new
alternative energies such as wind power, solar
power, and biomass energy, as well as NEA's
intention to improve efficiency and reduce emissions
from traditional carbon-based energy sources through
technologies such as clean coal plants and smart
grid technology. An NDRC official emphasized that
wind power generation, in particular, would be a key
area of development. The draft plan calls for total
wind power capacity to reach 150 GW by 2020, solar
power to reach 20GW, and nuclear power to reach
80GW. The plan also addresses one of the main
challenges for new energy development: connecting
these alternative energy sources to the power
grid. According an industry expert, the plan could
transform China into a key market for the solar
photovoltaic industry; changing it from the "world's
factory" for the solar photovoltaic industry into
the "world's market."
Investment at Home and Abroad
--------------
4. (SBU) An NDRC official emphasized to us that
China would increase new energy investments in China
and overseas, thereby contributing to global energy
production. He estimated the total investment in
the new energy sector would reach RMB 4.5 trillion
(USD 660 billion) by 2020, much higher than the
previously planned RMB 3 trillion.
Comment: A Market for U.S. Exports?
--------------
5. (SBU) China plans massive investments in
alternative and clean energy. While there are
likely opportunities for foreign firms, the Chinese
plans emphasize localization and improved domestic
production. In fact, part of the emphasis on solar
and wind technology over other more capital-
intensive solutions may be explained by the fact
that these simpler technologies are more readily
available in China, and have higher local content
BEIJING 00001521 002 OF 002
levels. Most production in solar equipment
production, for example, is dominated by local
firms, with around 50 new Chinese companies
expanding poly-silicon production lines with
investment over RMB 100 billion (about USD 15
billion). Chinese government financing and
purchasing regulations make it difficult for foreign
producers to compete. Foreign companies as a result
are not competing directly with Chinese manufactures
for photovoltaic products, focusing instead on high-
end, more value-added sectors such as design, R&D,
sales and third party service.
PICCUTA
SENSITIVE
SIPDIS
STATE FOR EAP/CM SFLATT/JHABJAN
STATE PASS USTR FOR STRATFORD, WINTER, MCCARTIN,
READE,
VENKATARAMAN, KEMP, MILLER, MALMROSE
DOC FOR MELCHER, SAUNDERS; LORENTZEN AND SHOWERS
(5130); HEIZNEN(6510)
E.O. 12958: N/A
TAGS: ECON EINV SENV CH
SUBJECT: CHINA TO INTRODUCE GREEN ENERGY SUPPORT
PLAN
This cable is Sensitive but Unclassified (SBU) and
for official use only. Not for transmission outside
USG channels.
1. (SBU) Summary: China's National Energy
Administration (NEA) has announced it will soon
submit a support plan for the alternate energy
sector. Although specific details have not yet been
released, the plan will focus on more-efficient and
alternative energies--particularly wind and solar--
and an Embassy contact estimated that investment in
the new energy sector would reach RMB 4.5 trillion
by 2020. Although some industry experts predicted
the plan will turn China into a key market for solar
equipment, the plan appears to emphasize
domestically-available technology. End Summary.
Emphasis on New Energy Technology
--------------
2. (U) At a June 1 press conference, Vice Chairman
Liu Qi announced that NEA had completed a draft
"Development Plan for New Energy" and would soon
submit it to the National Development and Reform
Commission (NDRC) and the State Council for
approval. Liu explained that the government
considered development of "new energy" an important
economic development strategy and would greatly
increase government investment in the new energy
sector. Under the plan, improved technology would
lower costs and help industrialize the new energy
sector. Liu also emphasized that NEA would proceed
cautiously and consider possible risks in their
pursuit of alternative energy.
Plan to Focus on Wind, Solar, and Biomass
--------------
3. (U) The plan outlines development goals for new
alternative energies such as wind power, solar
power, and biomass energy, as well as NEA's
intention to improve efficiency and reduce emissions
from traditional carbon-based energy sources through
technologies such as clean coal plants and smart
grid technology. An NDRC official emphasized that
wind power generation, in particular, would be a key
area of development. The draft plan calls for total
wind power capacity to reach 150 GW by 2020, solar
power to reach 20GW, and nuclear power to reach
80GW. The plan also addresses one of the main
challenges for new energy development: connecting
these alternative energy sources to the power
grid. According an industry expert, the plan could
transform China into a key market for the solar
photovoltaic industry; changing it from the "world's
factory" for the solar photovoltaic industry into
the "world's market."
Investment at Home and Abroad
--------------
4. (SBU) An NDRC official emphasized to us that
China would increase new energy investments in China
and overseas, thereby contributing to global energy
production. He estimated the total investment in
the new energy sector would reach RMB 4.5 trillion
(USD 660 billion) by 2020, much higher than the
previously planned RMB 3 trillion.
Comment: A Market for U.S. Exports?
--------------
5. (SBU) China plans massive investments in
alternative and clean energy. While there are
likely opportunities for foreign firms, the Chinese
plans emphasize localization and improved domestic
production. In fact, part of the emphasis on solar
and wind technology over other more capital-
intensive solutions may be explained by the fact
that these simpler technologies are more readily
available in China, and have higher local content
BEIJING 00001521 002 OF 002
levels. Most production in solar equipment
production, for example, is dominated by local
firms, with around 50 new Chinese companies
expanding poly-silicon production lines with
investment over RMB 100 billion (about USD 15
billion). Chinese government financing and
purchasing regulations make it difficult for foreign
producers to compete. Foreign companies as a result
are not competing directly with Chinese manufactures
for photovoltaic products, focusing instead on high-
end, more value-added sectors such as design, R&D,
sales and third party service.
PICCUTA