With efforts to reduce its increasing air pollution, China is exploring clean energy technology to potentially replace its existing coal-fired power stations.
According to Climate Action, the country’s energy agency announced on Thursday its plans to invest $361 billion into renewable power generation by 2020.
Clean energy market to drive economy
The National Energy Administration (NEA), said that this move will create 13 million jobs in the energy sector.
The administration highlighted that by 2020 installed renewable power capacity including solar, wind, hydro and nuclear power will constitute roughly half of new electricity generation, Climate Action reported.
“It has not been disclosed where the funds, equating to approximately $72 billion per year, will be spent.
“The investment does, however, reflect China’s continued commitment to reducing its use of fossil fuels, which have facilitated the country’s economic growth over the past decade,” Climate Action said.
“Last month, the National Development and Reform Commission (NDRC) – the country's economic planner – stated, as part of its plan to boost solar capacity by five times, that solar will receive 1 trillion yuan of spending,” Climate Action said.
They added: “Experts estimate that this will equate to around 1,000 major solar power plants. China became the world's top solar generator last year.
“The cost of building large-scale solar plants has dropped by as much as 40% since 2010.”
Steven Han, Renewables Analyst at Shenyin Wanguo, said: "The government may exceed these targets because there are more investment opportunities in the sector as costs go down".