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China Energy: An Investment in the Future 10/26/2010

Looking to invest in China? Market analysts say renewable energy is where to plant your dollars….and watch them grow.

As you all know, China has a whole lot of people, 1.33 Billion to be exact (I could be more exact and say 1,338,612,968 as an estimate for July 2010) but let’s not be picky. These people all use and consume energy on a daily basis. China has, in fact, recently become the world’s biggest energy consumer as of July 2010, as reported by the International Energy Agency. China however, consumes about five times less energy per capita than the United States.

None the less, if China (and the U.S. for that matter) continue at such a pace, it will only lead to more of an energy crisis than there already is. Hence, the need for renewable, clean and green energy sources is growing. In efforts to fuel this need China has set a goal to have 15% of its energy use be non-fossil-energy by 2020; wind and solar are predicted to be the largest part of this surge.

According to Marketwatch, in 2002 China consumed 2.2 billion tones of oil “equivalent” or 19.5% of the world’s total energy consumption. Investment in clean energy in China however was $34.6 billion in 2009 (up almost 150% from 2005). China’s wind power market alone has been estimated to be worth 1.5 trillion RMB (or roughly 225 Billion USD) by the year 2020. (source: Energy Research Institute of the National Development and Reform Commission.)

Investing in clean energy could see high returns, both for your pocket book and the sustainability of our earth.

Some useful resources:

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China Raises Gas Prices 10/25/2010

Bloomberg Business Week Reports: Today China has increased gas prices by 3 percent. According to the National Development and Reform Commission, the ceiling for gas prices will increase by 230 yuan or $34.50 USD per metric ton. Diesel prices will also go up by 220 yuan.

The increase is said to be in part to help China reach its energy goals (cut energy consumption per unit of gross domestic product 20% by 2020.) It is also a way to help slow down China’s economy and focus on its green energy efforts.

The price hike is also reported to affect inflation, although it is predicted that the overall affect on prices will not be much. Picture Source

Bloomberg’s Full article

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China Energy: Goals for 2010 10/8/2010

"China Energy" Goals for 2010According to the China Daily Newspaper, China has made great strides to meet the energy consumption goals the Central Government has set for 2010. The mission is to cut energy use per unit of GDP by 20 percent by the end of 2010. The Minister of Industry and Information Technology of China, Li Yizhong said on Friday that they are on track to hit the mark in efforts to become a more green country.

This goal could affect where your company chooses to invest or start a business. Provinces heavy in highly consumptive and pollutant industries like steel, iron and cement production are being affected more than other regions. Areas with more of a balanced landscape of industries are having an easier time reducing overall energy consumption.

Some of the struggling provinces have received orders to shut down certain factories after the government ordered for more than 2,000 closures of inefficient, highly polluting factories nationwide in August.  According to Bloomberg, some specifically challenged cities have faced blackouts affecting businesses, homes, traffic signals and hospitals as the local governments strain to meet the proposed energy goals. The Central Government has been halting these outages as quickly as possible to encourage regions to meet the goal the right way.

China has also reduced its energy consumption and helped improve environmental conditions through the closure of some small thermal power plants and other energy-hogging projects and by slowing the growth of additional highly consumptive and pollutant projects.


Guardian: China Electricity Blackouts

China Daily: China Energy Consumption Down

Bloomberg: Energy Intensity Targets

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