THE 10TH FIVE-YEAR PLAN FOR ECONOMIC AND SOCIAL DEVELOPMENT OF THE PEOPLE'S REPUBLIC OF CHINA (2001-2005)
China Tenth Five-Year Plan (2001-2005)
The principal objectives of the plan include: 1. Sufficient utilization of clean energies like natural gas, hydropower and nuclear power 2. Promoting new energy and renewable energy like solar PV and wind3. Advancing clean coal technology 4. diminishing and decreasing reliance on coal targets 5. Achieving sustainable development of energy
Renewable Energy Promotions LawUnder the direction of the National Development and Reform Commission, China Center for Renewable Energy Development (CRED) €” the Renewable Energy Development and Utilization Promotion Law. meet short-term energy needs while strengthening long-term sustainable development objectives. -to reduce air pollution, safeguard human health and the environment, and provide power to off-grid rural areas as well as contribute to mitigating climate change. -synthesize market economic with energy security initiatives. Incentive policies to create market opportunities for renewable energy on the local, enterprise, and public promotion levels -CRED will work with various Chinese government ministries, environmental committees and utility companies, as well as a variety of Chinese experts and international organizations, in drafting the new law
Preferential Tax Policies for Renewable EnergyAs of 2003, foreign investment in both biogas and wind energy production also benefits from a reduced income tax rate of 15%, as opposed to 33%. Renewable energy enterprises and bio-energy development projects can also request income tax reduction or exemptions. In addition wind turbines and their main components, as well as photovoltaic modules, benefit from preferential customs duty rates. As of September 2007, the Chinese government was developing a series of preferential tax policies to encourage the development of energy conservation and renewable energy. The new incentives include income tax cuts for the producers and consumers of renewable energy, as well as a reduction of the import tax for "green" equipment.
Reduced VAT for renewable energyIn 2001 value added tax (VAT) for wind power cut in half, to 8.5% (normal rate 17%). In the same year, a circular determined that VAT collected for using municipal solid waste for power generation would be refunded back to the producer. In 2003, the VAT for biogas production was also reduced to 13%.tax and subsidization policy designed to promote hydropower and new energy industries. For instance, production value-added tax (VAT) will be changed to consumption VAT.
Renewable Targets
the Tenth Five-Year Plan emphasizes the commercialization of PV and wind technologies, diesel and battery systems, bioelectricity, geothermal energy, and fuel forests in rural areas.
-Inclusive of small hydropower, wind, and solar energy projects -Wind farms are planned for Xinjiang, Inner Mongolia, Hebei, Jilin, Liaoning, Hubei, and Guangdong provinces with a combined capacity of 500 MW.-Electricity production goals: Reach 13 metric tons of coal equivalent (Mtce) of electricity using new and renewable energy (excluding small hydropower and traditional use of biomass), with corresponding CO2 reduction of 10 metric tons (Mt) and SO2 reduction of at least 0.6 Mt. -Remote power: Provide power for 1.3 million families (5-6 million people) in remote areas, and provide employment for 200,000 people. -Solar water heating: Increase annual solar water heating to 11 million square meters (m2), with the cumulative amount of 64 million m2. There will be 5-10 large-scale enterprises with internationally competitive ability. -Solar electricity: Increase production capacity of solar cells to 15 megawatts (MW) each, with a cumulative capacity of 53 MW. -Wind power: Increase installed capacity of grid-connected wind power to 1.2 gigawatts, with manufacturing capacity at 150-200 MW to meet domestic market demand. -Geothermal energy: Increase the production of geothermal energy to 20 million m2. -Bioenergy: Increase gas supplies
The principal objectives of the plan include: 1. Sufficient utilization of clean energies like natural gas, hydropower and nuclear power 2. Promoting new energy and renewable energy like solar PV and wind3. Advancing clean coal technology 4. diminishing and decreasing reliance on coal targets 5. Achieving sustainable development of energy
Renewable Energy Promotions LawUnder the direction of the National Development and Reform Commission, China Center for Renewable Energy Development (CRED) €” the Renewable Energy Development and Utilization Promotion Law. meet short-term energy needs while strengthening long-term sustainable development objectives. -to reduce air pollution, safeguard human health and the environment, and provide power to off-grid rural areas as well as contribute to mitigating climate change. -synthesize market economic with energy security initiatives. Incentive policies to create market opportunities for renewable energy on the local, enterprise, and public promotion levels -CRED will work with various Chinese government ministries, environmental committees and utility companies, as well as a variety of Chinese experts and international organizations, in drafting the new law
Preferential Tax Policies for Renewable EnergyAs of 2003, foreign investment in both biogas and wind energy production also benefits from a reduced income tax rate of 15%, as opposed to 33%. Renewable energy enterprises and bio-energy development projects can also request income tax reduction or exemptions. In addition wind turbines and their main components, as well as photovoltaic modules, benefit from preferential customs duty rates. As of September 2007, the Chinese government was developing a series of preferential tax policies to encourage the development of energy conservation and renewable energy. The new incentives include income tax cuts for the producers and consumers of renewable energy, as well as a reduction of the import tax for "green" equipment.
Reduced VAT for renewable energyIn 2001 value added tax (VAT) for wind power cut in half, to 8.5% (normal rate 17%). In the same year, a circular determined that VAT collected for using municipal solid waste for power generation would be refunded back to the producer. In 2003, the VAT for biogas production was also reduced to 13%.tax and subsidization policy designed to promote hydropower and new energy industries. For instance, production value-added tax (VAT) will be changed to consumption VAT.
Renewable Targets
the Tenth Five-Year Plan emphasizes the commercialization of PV and wind technologies, diesel and battery systems, bioelectricity, geothermal energy, and fuel forests in rural areas.
-Inclusive of small hydropower, wind, and solar energy projects -Wind farms are planned for Xinjiang, Inner Mongolia, Hebei, Jilin, Liaoning, Hubei, and Guangdong provinces with a combined capacity of 500 MW.-Electricity production goals: Reach 13 metric tons of coal equivalent (Mtce) of electricity using new and renewable energy (excluding small hydropower and traditional use of biomass), with corresponding CO2 reduction of 10 metric tons (Mt) and SO2 reduction of at least 0.6 Mt. -Remote power: Provide power for 1.3 million families (5-6 million people) in remote areas, and provide employment for 200,000 people. -Solar water heating: Increase annual solar water heating to 11 million square meters (m2), with the cumulative amount of 64 million m2. There will be 5-10 large-scale enterprises with internationally competitive ability. -Solar electricity: Increase production capacity of solar cells to 15 megawatts (MW) each, with a cumulative capacity of 53 MW. -Wind power: Increase installed capacity of grid-connected wind power to 1.2 gigawatts, with manufacturing capacity at 150-200 MW to meet domestic market demand. -Geothermal energy: Increase the production of geothermal energy to 20 million m2. -Bioenergy: Increase gas supplies
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