1 November China's renewable expansion November 1, 2024 By ER Law Admin Energy, Environment, International, Resources and Energy, Technology 0 Many organizations have viewed entering the Chinese market as difficult, but we’re seeing some changes that may make the process smoother in the future. The Chinese market is attractive, with the country commissioning as much solar PV as the rest of the entire world in 2022 according to the International Energy Agency. China’s renewable expansion Many organizations have viewed entering the Chinese market as difficult, but we’re seeing some changes that may make the process smoother in the future. The Chinese market is attractive, with the country commissioning as much solar PV as the rest of the entire world in 2022 according to the International Energy Agency. In 2021, the Chinese Central Government outlined its goals for carbon peaking and carbon neutrality. This included: Establishing a green, low carbon, circular economic system by 2025; Carbon dioxide emissions reaching their peak in 2030; and The establishment of a clean, low-carbon, safe and efficient energy system by 2060, with non-fossil energy consumption that exceeds 80% and the achievement of carbon neutrality. This has provided the impetus for industry to progress quickly in China. To further assist the energy transition, in 2022, the catalog of industries where foreign investment is encouraged was extended to include several sectors in the renewable energy industry, including new solar, wind and renewable energy power stations. The catalog also highlighted how important foreign investment was in developing the technology and infrastructure for the renewable energy industry in China. This is encouraging and will assist foreign investors looking to enter or expand in the Chinese market. With more foreign investment in the renewable energy space encouraged, it does raise the issue of how disputes in the area will be dealt with in China. There is evidence to indicate that arbitration is increasing in China. With arbitration an internationally accepted dispute resolution process, this provides an efficient way to resolve disputes. Specialised energy arbitration centres have been established that are available to foreign energy companies. The Chinese Government has also recognised new categories of litigation for energy dispute cases to its civil actions list, including carbon mining trading and carbon emission trading disputes. There is also an expansion of China’s interests abroad, with China’s international investments in clean tech estimated to be in excess of US$100 billion. Its focus extends beyond investment to research and development and export of clean technologies. To put it in context, China’s investment exceeds the United States and European Union combined. However, Australia only attracted US$613 million of this investment in 2023, representing a significant growth opportunity for Australia. China has made significant advancements in various areas including wind, solar and battery technologies, hydro-electric dam construction, EV supply chains and grid technology. The country’s production has contributed to the reduction in global costs for clean tech and reduced trade barriers, presenting an opportunity for Australia to take advantage of lower cost Chinese technology. Other opportunities for Australian organisations include partnering with Chinese firms to benefit from their expertise in cleantech and renewable energy production. There is also an opportunity to leverage Chinese expertise alongside Australian Government incentives to accelerate the energy transition and achieve sustainability goals. Whether it be in China or leveraging Chinese expertise, there are significant opportunities to partner with this large economy as part of our energy transition. Related Articles Renewable Energy Guidelines and Accelerated Approvals The Clean Energy Council, in collaboration with KPMG, has released its Leading Principles: First Nations and Renewable Energy Projects. The document provides detailed guidelines on how to address challenges to effective engagement and sets out best practice principles to engage with First Nations People on renewable energy projects. Trends in the Australian renewables market In its Australian Renewables Report 2021, MinterEllison looks at trends in the renewable energy market and identifies opportunities for the future. ARELJ Article - Public Duties on the Disposal of Australia's Non-Renewable Resources: The Case for Regulatory Reform Outline of new state legislation New legislation has been proposed across several states in Australia. These cover a range of issues including climate change and the development of hydrogen and renewable energy industries. In this article we outline the latest changes in New South Wales, South Australia, Queensland and the Northern Territory. Recent State legislative updates Both Victoria and South Australia have recently progressed significant legislation focused on renewable energy. The Victorian Government’s Climate Change and Energy Legislation Amendment (Renewable Energy and Storage Targets) Bill 2023 has had its second reading in the Legislative Assembly. The Bill is intended to reduce the cost of power bills, create tens of thousands of jobs and encourage investment in the State’s renewable energy industry. Why hydrogen is becoming an important energy source Hydrogen as an energy source continues to grow in popularity. Once confined to industrial processes such as refining crude oil, it is now being recognised as a potential solution to the problems of electricity generation, transportation and storage. Over the next thirty years, global energy demand is predicted to grow by at least 30-40%. At the same time, the share of energy generated from fossil fuels has stayed almost static at 81%. While renewable energy technologies such as solar and wind are getting cheaper, they can only be generated on an intermittent basis. To make them commercially practical to use, they must be combined with high-energy batteries and backed with other energy sources. Showing 0 Comment Comments are closed.