The Role of Renewable Energy Law 2005 in Supporting the Development of Off-grid Renewable Electricity in China

摘要

In this article, the author will analyse the role of Renewable Energy Law 2005, as amended in 2009, in supporting the development of off-grid renewable electricity (OGRE) with a view to exceeding China's actual electricity needs in an environmentally sustainable manner. The author will focus primarily on how the Law has addressed the main issues hindering the development of the sector. The identified issues are lack of technological capacity and awareness of/access to initial capital of OGRE projects. The author will argue that the implementation of some of the Law's provisions have been fundamental to the accelerated development of OGRE when compared to how this used to be. First of all, the Law provides a clear context for the development of OGRE that is reinforced by priority statutory provision. The result of the priority provision is that OGRE investments and projects have priority over fossil fuel electricity investments in accessing existing electricity and climate-change funding. Secondly, the Law has resulted in the adoption of targets for a number of OGRE strategies and follow-up implementation measures. Again, provisions for the inclusion of lower tiers of government in the adoption of targets and implementation measures have helped in garnering grass-root actions for addressing previously identified barriers to OGRE development. The implementation of provisions for preferential bank loans and a Renewable Energy Development Fund (REDF) have been beneficial in addressing the issue of financing OGRE projects. Notwithstanding these positive developments, the author will argue that there are some areas for improvement in the design and implementation of the Law in the context of supporting the development of OGRE. One such area is the lack of comprehensive targets for the whole of the OGRE sector. Another challenge is the recommendatory nature of the obligation on banks to provide preferential loans to OGRE projects. The author will conclude that addressing the identified gaps would strengthen the role of Renewable Energy Law 2005 in supporting the development of OGRE in China.