China Wind Farm

Photo by: Mike Locke

The United States wind industry gained a new competitor as China surpasses Germany last year to reach the world’s #2 spot for total installed capacity.  Currently, the US sits in a comfortable lead with 35,159 MW of total installed capacity;but with China’s exponential installation growth, our hold may not be very strong.  According to the Global Wind Energy Council (GWEC), in 2004, there were only 764 MW of wind capacity installed in China.  That number has been doubling almost every year, reaching 25,805 MW by the end of 2009.

Goals for wind turbine installations have been growing as well.  In 2007, China announced a national target of 5,000 MW installed by 2010.  Only a year later, that number increased to 10,000 MW.  After a whopping 13,785 MW growth in 2009, China set a new target of 35,000 MW installed by 2011, and 150,000 MW installed by 2020—a fivefold jump from the original 30,000 MW goal in 2007 and 50,000 MW more ambitious than the US goal of 100,000 MW installed by 2020.

The push behind China’s renewable energy boom lies in their National Renewable Energy Legislation.  First effective in 2006, the legislation states a national preference for the development and utilization of alternative energy resources.  This meant setting a national commitment of 15% renewable energy use by 2020 and providing increased government funding for green energy research and projects.  The legislation also requires power grid operators to purchase all energy generated from renewable sources, with a penalty for those who do not abide.

wind turbine production

Engineers work on a wind turbine part.

Despite our difference in governing styles, the United States could stand to learn a thing or two from China’s National REL—especially in the economic success it has created.  According to the Chinese Renewable Energy Industries Association (CREIA), renewable energy accounted for 1.12 million jobs in 2008 and is climbing by 100,000 each year.  The majority of these jobs come from manufacturing companies.  China is currently the leading producer of wind turbines and solar panels.  In the wind industry, that success was facilitated by the adoption of the “70% domestic” rule in 2004 which states that all turbines in Chinese wind farms must have at least 70% of its parts made in Chinese factories.  The impact was phenomenal.  The Chinese turbine production industry has grown from only six manufacturers in 2004 to nearly 90 at the end of 2009.  The government recently abolished this requirement to allow for more participation in the international market.  According to GWEC, only 17 Chinese-made wind turbines were exported in 2009.

The American market has the potential to grow at such an electrifying pace as well if we adopt a National RES.  The “Job Impacts of a National Renewable Energy Standard” study, conducted in 2009 and published by the RES Alliance for Jobs, found that a 25% by 2025 national standard would support an additional 274,000 jobs than an industry without a public policy.  The American Solar Energy Society’s (ASES) Green Jobs Report also forecasts more favorable outcomes for implementing an RES.  In the “business as usual” scenario, which means no changes in policy or major initiatives, the report only predicts a 130% increase in revenue and a 160% increase in jobs created in the next two decades.  The alternative scenario, which calls for a sustained public policy commitment, predicts a potential revenue growth of 1,200% and a 1,300% increase in jobs in the next two decades.  These are astounding differences for the adoption of one piece of legislation.

Figure 1

Change in Renewable Electricity Supported Jobs in 2025 With a 25% RES by 2025.

Every other summer, my parents and I take a trip back to China to visit our family.  I will never forget how my homeland greets me as I step onto its streets.  Outside, the sun burns earnestly on a cloudless horizon.  Its light is obscured by a permanent layer of smog, causing the sky to remain a dusty gray-blue hue and trapping in the oppressive heat.  Take a breath, and the summer’s fever invades the lungs, infecting the veins within milliseconds.  “Sauna days,” my uncle chuckles as he lifts my last suitcase into the car, “do you miss them?”

I don’t.  I really don’t.  Sauna days are the worst part of my Eastern adventures.  Hopefully, these muggy summers become more bearable with the help of a strong national commitment to greener energy, making my future vacations a lot more enjoyable.  As for the rest of the seasons I spend in the good old US of A, here’s hoping we are headed in the same direction.