ACADEMIA Letters

Observations on Renewable Energy in China

Giuseppe Poderati, Ph.D. Candidate at Research Institute of Environmental Law -
Wuhan University (China)

To start with, it is essential to highlight China’s political will and commitment to achieving
the Sustainable Development Goals (SDGs) through multilateralism, solidarity, and coop-
eration. China’s President, Xi Jinping, stated at the United Nations General Assembly the
following: “We aim to have CO2 emissions peak before 2030 and achieve carbon neutrality
before 2060”.[1] COVID-19 reminds us that humankind should launch a “green revolution”.
In particular, in the current parlance, it is possible to refer to SDG 7, which plainly focuses on
“ensuring access to affordable, reliable, sustainable, and modern energy for all” by 2030.[2]
For example, the ratio legis of energy legal instruments must encourage some fundamental po-
litical actions towards the achievement of the aforementioned SDG, namely: (i) investing in
clean energy sources in order to grant universal access to affordable electricity; (ii) assuming
energy efficiency standards (for example, to reduce building and industry energy consump-
tion); and (iii) stimulating innovation to utilize the best available green technologies fully to
provide clean energy to the population in all Chinese provinces pushing for global sustainable
economic development.
To meet this policy goal, China is making huge efforts, inter alia, to decarbonize its econ-
omy and to implement its own vision, domestic laws, and regulations, such as China’s Re-
newable Energy Law (2005–as amended in 2009) and the Energy Production and Consump-
tion Revolution Strategy (2016–2030).[3] Besides that, China’s 14th Five-Year Plan is highly
aligned with the energy-related SDGs, designing a roadmap to fight climate change. As it
has been noted by Hao Zhang (while analyzing the Renewable Energy Law), the level of the
policy framework, regulation, and enforcement of the obligation to ensure priority access of
renewable energy to the power grid and full purchase of renewable energy generation that is
climate and environmentally friendly must be increased nationwide.[4] As a result, striking

Academia Letters, January 2022 ©2022 by the author — Open Access — Distributed under CC BY 4.0

Corresponding Author: Giuseppe Poderati, gpoderati@gmail.com

Citation: Poderati, G. (2022). Observations on Renewable Energy in China. Academia Letters, Article 4540.
https://doi.org/10.20935/AL4540.

1
a power balance between provincial interests and local protectionism (e.g., renewable energy
operators and grid enterprises) is critical to increasing transparency in grid operations and
renewable energy consumption in China.
From this perspective, it could be quite interesting to impose renewable energy quotas
across the nation. In this pragmatic way, China could become the largest renewable energy
market in the world, largely contributing to global economic growth. Of note, the important
role of renewable energy in China’s energy consumption is crucial to mitigating the pressure
coming from greenhouse gas emissions and in relation to reducing air pollution as well as
health problems.
To reduce its “carbon intensity”, China must be able to provide sufficient legal protection
to non-fossil energy investors, especially with regard to their rights to priority access and guar-
anteed full purchase. Under this perspective, Article 1 of the Renewable Energy Law plainly
states that: “This law is enacted for the purpose of promoting the development and utilization
of renewable energy, increasing the supply of energy, improving the structure of energy, safe-
guarding the safety of energy, protecting the environment, and realizing sustainable economic
and social development.”[5] Thus, all in all, the Chinese legal system has to make available
adequate judicial remedies, for example, concerning the so-called curtailment disputes. In
so doing, China will have the chance to become the world’s biggest renewable energy de-
veloper, particularly in wind and solar power.[6] Under Chapter IV, entitled “Promotion and
Application”, Article 14 notably establishes that:

“The power grid enterprise shall sign a grid-connection agreement with the enter-
prise of power generation with renewable energy that has legally obtained an ad-
ministrative license or has submitted the project to be constructed for the record,
and buy the entire quantity of the grid-connected power generated with renew-
able energy within the coverage of their power grids, and provide grid-connection
services for the generation of power with renewable energy”.

This rule is central because it recognizes the state’s essential role in the implementation of
renewable energy policies and projects in rural areas.[7] It is clear that the state exercises su-
pervision over the exploitation of renewable energy. Most importantly, in our current context,
Article 29 of the Renewable Energy Law 2005/2009 imposes full responsibility on the power
grid enterprise that fails to purchase the entire quantity and is required to pay fair compensa-
tion if this results in an economic loss.[8] For this reason, grid companies have an obligation
to set a proper schedule for the generation of electricity from renewable resources first.[9]
In 2015, the State Council reformed tried, on the one hand, to facilitate trade between
grid companies and manufacturers by allowing “a more rapid uptake” of renewable energy

Academia Letters, January 2022 ©2022 by the author — Open Access — Distributed under CC BY 4.0

Corresponding Author: Giuseppe Poderati, gpoderati@gmail.com

Citation: Poderati, G. (2022). Observations on Renewable Energy in China. Academia Letters, Article 4540.
https://doi.org/10.20935/AL4540.

2
generation resources and, on the other hand, to stimulate investments in the clean energy
sector.[10] Broadly speaking, China’s energy policy matters at the global level, and this is also
recognized in several documents and reports elaborated by international organizations such as
the United Nations Development Programme (UNDP)[11] and the International Renewable
Energy Agency (IRENA).[12] It is crucial to underline here that renewable energies have
been central to China’s energy mix in recent decades. Accordingly, some projections made by
IRENA suggest that by 2030, China’s energy consumption will soar by 60 percent, an outcome
that could worsen the devastating impacts of climate change.
This aspect is attention-grabbing. In point of fact, international law (e.g., through the Paris
Agreement 2015) firmly encourages the strengthening and boosting of the renewable energy
sector, which is considered a good and indispensable strategy in the fight against climate
change. The UNDP pointed out that promoting renewable energy is important to alleviating
poverty by granting access to sustainable energy within a safe environment, also in rural and
remote areas of China. Public-Private partnerships might generate positive impacts not only
on mitigating climate change but also on creating favorable economic conditions through the
development of new forms of energy (e.g., biomass energy, hydrogen).[13]
To conclude, China has to change and possibly evolve. As it is the world’s largest producer
and consumer of energy, the use of clean energy can remove from itself the label of being the
largest emitter of greenhouse gases (GHGs) in the world. The road is long, but the country
seems to be on the right track.

Academia Letters, January 2022 ©2022 by the author — Open Access — Distributed under CC BY 4.0

Corresponding Author: Giuseppe Poderati, gpoderati@gmail.com

Citation: Poderati, G. (2022). Observations on Renewable Energy in China. Academia Letters, Article 4540.
https://doi.org/10.20935/AL4540.

3
References
[1] “COVID-19 reminds us that humankind should launch a green revolution and move faster
to create a green way of development and life, preserve the environment and make Mother
Earth a better place for all. Humankind can no longer afford to ignore the repeated warn-
ings of Nature and go down the beaten path of extracting resources without investing in
conservation, pursuing development at the expense of protection, and exploiting resources
without restoration. The Paris Agreement on climate change charts the course for the world
to transition to green and low-carbon development. It outlines the minimum steps to be
taken to protect the Earth, our shared homeland, and all countries must take decisive steps
to honor this Agreement. China will scale up its Intended Nationally Determined Contri-
butions by adopting more vigorous policies and measures. We aim to have CO2 emissions
peak before 2030 and achieve carbon neutrality before 2060. We call on all countries to
pursue innovative, coordinated, green and open development for all, seize the historic op-
portunities presented by the new round of scientific and technological revolution and in-
dustrial transformation, achieve a green recovery of the world economy in the post-COVID
era and thus create a powerful force driving sustainable development” see, the statement
by H.E. Xi Jinping President of the People’s Republic of China at the General Debate of
the 75th Session of The United Nations General Assembly (22 September 2020) avail-
able at <https://www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1817098.shtml> (accessed 7
March 2021)

[2] See, Sustainable Development Goals available at <https://www.un.org/sustainabledevelopment/

energy/> (accessed 7 March 2021)

[3] IEA, ‘Energy Production and Consumption Revolution Strategy (2016-2030)’ available at
<https://www.iea.org/policies/1794-energy-supply-and-consumption-revolution-strategy-2016-
2030> (accessed 7 March 2021)

[4] Hao Zhang, ‘Prioritizing Access of Renewable Energy to the Grid in China: Regulatory
Mechanisms and Challenges for Implementation’, (2019) 3 Chinese Journal of Environ-
mental Law 167-202. Sara Shuman, Alvin Lin, ‘China’s Renewable Energy Law and its
impacts on Renewable Power in China: Progress, Challenges, and Recommendations for
improving implementation’ (2012) 51 Energy Policy 89. Lynn Price, Xue Wang, Jiang
Yun, ‘The Challenge of Reducing Energy Consumption of the Top-1000 Largest Indus-
trial Enterprises in China’ (2010) 38 Energy Policy 6485

[5] Article 1 of Renewable Energy Law 2005/2009. Furthermore, see Article 17 (of the

Academia Letters, January 2022 ©2022 by the author — Open Access — Distributed under CC BY 4.0

Corresponding Author: Giuseppe Poderati, gpoderati@gmail.com

Citation: Poderati, G. (2022). Observations on Renewable Energy in China. Academia Letters, Article 4540.
https://doi.org/10.20935/AL4540.

4
 same law) significantly states: “The State encourages units and individuals to install and
use solar energy utilization systems, such as solar water-heating system, solar heating and
cooling system and solar photovoltaic system”.

[6] Libin Zhang, ‘China’ in Renewable Energy Law Review (Karen B Wong ed, Law Business
Research Ltd, London, 2018) Ch 5.

[7] Article 18 of Renewable Energy Law 2005/2009: “The State encourages and supports
exploitation of renewable energy in rural areas. The energy administration departments of
local people’s governments at or above the county level shall, in light of local economic
and social development, the need for comprehensive improvement of ecological protection
and public health and other actual conditions, work with the relevant departments to draw
up plans for development of renewable energy in rural areas, in order to promote the wide
use of the technologies for conversion of biomass energy like marsh gas, for household
solar energy, small-scale wind energy and small-scale hydraulic energy”.

[8] Article 29 states: “Where in violation of the provisions in Article 14 of this Law, a power
grid enterprise fails to purchase the entire quantity of power generated with renewable en-
ergy, thus causing economic losses to the enterprise of power generated with such energy,
it shall bear the responsibility for compensation, and the power regulatory institution of
the State shall order it to rectify within a time limit; if it refuses to comply, it shall be
fined not more than the amount of the economic losses suffered by the enterprise of power
generated with renewable energy”.

[9] Supra note 3, Hao Zhang, 177

[10] See, State Council, ‘Opinions of the State Council on Further Reforming the Electric
Power System’ (2015) No 9.

[11] UNDP, ‘Renewable Energy, Renewed Hope: Advancing Sustainable Energy in Rural
China’ <https://www.cn.undp.org/content/china/en/home/stories/renewable-energy–renewed-
hope–advancing-sustainable-energy-in-.html> (accessed 7 March 2021)

[12] International Renewable Energy Agency (IRENA), ‘A Renewable Energy Roadmap

Remap 2030; Renewable Energy Prospects: China’ (November 2014) (accessed 7 March
2021)

[13] UNDP, ‘Alternative Livelihoods and Renewable Energy’ (China), <https://www.cn.

undp.org/content/china/en/home/ourwork/environmentandenergy/in_depth/alternative-livelihoods-

Academia Letters, January 2022 ©2022 by the author — Open Access — Distributed under CC BY 4.0

Corresponding Author: Giuseppe Poderati, gpoderati@gmail.com

Citation: Poderati, G. (2022). Observations on Renewable Energy in China. Academia Letters, Article 4540.
https://doi.org/10.20935/AL4540.

5
 and-renewable-energy.html> (accessed 7 March 2021)

Academia Letters, January 2022 ©2022 by the author — Open Access — Distributed under CC BY 4.0

Corresponding Author: Giuseppe Poderati, gpoderati@gmail.com

Citation: Poderati, G. (2022). Observations on Renewable Energy in China. Academia Letters, Article 4540.
https://doi.org/10.20935/AL4540.