Harvard Business Review: ‘China’s National Energy Administration announced its intention to add 10 gigawatts of solar power capacity in 2013.’
The time to cross great divides and collaboratively develop a sustainable, profitable development model for Green China to come. The travels around China’s east coast, periphery and centre have revealed early seeds sown – solar heating and panels were a dime a dozen atop rooftops even in China’s far flung out frontiers. Perhaps, like a good tennis stroke, a good follow through; with sensible business minds, is needed to convert more of its burgeoning middle class into proponents of renewable energy.
– – –
Behind China’s Roaring Solar Industry
by Michael J. Silverstein |
Source – Harvard Business Review, published Jan 11, 2013
Wednesday, Bloomberg reported that Chinese solar stocks had soared based on market expectations that demand in China for alternative energy will increase given the Chinese government’s increasing solar capacity targets. Earlier this week, China’s National Energy Administration announced its intention to add 10 gigawatts of solar power capacity in 2013, more than twice its current level. According to Barron’s and others, China has already begun implementing its ambitious plan to increase installations. It previously approved the Golden Sun initiative for the first half of this year and committed prodigious amounts of government cash to the sector.
China has also begun offering subsidies for rooftop solar projects. These aren’t controversial production-side subsidies (of the kind that have been challenged as contravening international trade agreements) but rather incentivizing domestic subsidies intended to help Chinese citizens and organizations to purchase solar systems at an affordable price. This week, the share price of Trina Solar Ltd. the nation’s third-biggest maker of solar panels, jumped to the highest level in five months even as that of LDK Solar Co. rallied 7.7 percent.
Although some commentators may see this uptick in China’s solar investments (and equity values) as an intriguing short term phenomenon, we at The Boston Consulting Group believe it reflects a public commitment on the part of China’s government to embrace clean energy sources and to seek economic growth that is less energy dependent, as well as these profound long-term trends:
Please click here to read the rest of the article at the source.
Read the rest of this entry »
Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Climate Change, Collectivism, Culture, Domestic Growth, Economics, Government & Policy, Green China, Influence, Infrastructure, Lifestyle, Population, Reform, Science, Technology, The Chinese Identity, China's Rise