China is already pursuing ambitious plans to transform its energy system and reduce greenhouse gas emissions. The China Renewable Energy Outlook (CREO), which was introduced by the China National Renewable Energy Centre (CNREC) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on 14 November at COP 23 in Bonn, proposes additional measures to ensure the targets of the Paris Climate Accord are met in the long-term. The Deutsche Energie-Agentur (dena) – the German Energy Agency – provided expertise on technical and regulatory issues with regard to the topics of grid development and smart grids, as well as subsidisation policies for renewable energy sources.
A functional mechanism for CO2 pricing is required to reduce emissions in the long-term. The currently very regulated Chinese energy system could be optimised if the electricity market and grid usage were more integrated across provinces and organised according to market principles. The current system of set feed-in tariffs could also be made more market-friendly through the direct marketing of renewable energy and green electricity certificate trading.
“Even if the starting point is sometimes quite different, China and Germany face similar challenges when it comes to transforming the energy system. This concerns, for example, the integration of renewable energy sources into systems, the improvement of energy efficiency, and the development of intelligent grid and market structures,” said Hannes Seidl, Head of Division for energy systems and energy services at dena, at the CREO presentation. “We are delighted that this exchange has been so constructive and goal-oriented. It is a good basis for China and Germany to make a joint contribution to climate protection.”
The China Renewable Energy Outlook
The CREO analyses China’s energy policy and makes recommendations for further developments − with the goal of promoting the energy transition and providing China with support in achieving its climate protection targets. The annual publication is based on concrete models of the Chinese energy system. In addition to dena, Chinese, German, Danish and American institutes, think-tanks and universities participate in compiling the CREO.
The advice provided by dena to the CNREC is funded by the Federal Ministry for Economic Affairs and Energy based on a decision by the German Parliament.
The summary of the CREO is available online.