Outline for Development of the New and Renewable Energy in China

(From 1996 to 2010)

 Tactics and Measures

It is of great prospects and practical at present to research and develop the applications on the new and renewable energy. But due to being developed, more supports and relative policies from the government should be given, comparing with other energy construction.

Enhance the Recognition and Strengthen the Leadership¡¡

Development of the new and renewable energy has related to the improvement of ecological environment and the balance of demand and supply of energy, which plays an important role in solving the problem of energy supply in towns and rural area, particularly in the remote areas. Governments at all levels and responsible departments must recognize the importance of its strategic position and role of the new and renewable energy. Therefore, the popularization on its development and applications should be taken as a basic energy policy to be reinforced by the leadership. The new and renewable energy must be listed into the overall plan of the national economic construction and into the government financial budget plan.

The State Planning Commission, State science Commission, State Economic and Trade Commission and other departments concerned should strengthen their coordination and cooperation to enact unified and practical plans on the development of the new and renewable energy. They also should give instructions and coordinate the relative development plans in each region and department. They also should consult timely with each other about the plans and issues and then carry out their mission independently. It will lead to the establishment of a development system combined with scientific research and industrialized production to avoid repeated research and importing.

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Work out Favorable Policies

Development of the new and renewable energy is a public welfare with profound and long lasting significance. At present most of the new and renewable energy are being in the early stage of development with lower production and lower benefits and less competitive capacity. Therefore, it should be protected from the state macro control policies. 

The most powerful support from the state to the development of the new and renewable energy lies on the establishment on favorable policies benefited to the new and renewable energy. After cordially consulted by the State Planning Commission, State science Commission, State Economic and Trade Commission with financial, banking and tax departments, the relative favorable policies on finance, investment, credit, taxes and price are to be developed and worked out respectively according to the plan and objectives in the outline for development of the new and renewable energy in China and as well as its technical characteristics, prospects and the profit potential. 

Increase the financial aids and investment. It is imperative to increase the financial aids and investments on the research and development of the technology and products of the new and renewable energy, which also should be guaranteed its appropriation to the projects so as to fasten the breakthrough on the technology and process and its system development.

Enlarge the credit scale and provide low-interest loans. More detailed and favorable investment policies should be worked out to enlarge loans and credits in industrialization and service system, as well as the long-term and low-interests loans. At the same time, propaganda and promotion on the projects should be made to arise the enthusiasm of investment from all aspects, broaden channel of funds and raise the efficiency of funds. 

Establish policies of rewards, cost compensation, tax reduction and exemption. The working out of these policies will accelerate the products of the new and renewable energy into the market, upgrade their competition ability and finally occupy their positions in the market.

Intensify the Research and the Demonstration on the new and renewable energy

According to the requirements in this Outline, the responsible departments and commissions will study and work out ¡°the Development Plan 1996-2010¡± and ¡°the Ninth Five Year Plan¡±. Funds and manpower should be concentrated to support the priority projects. Strengthen the connection of the research demonstration and the industrialization so as to promote the conversion of scientific research achievements into productive forces.

Strengthen the Industrialization

The central government, governments at all levels and departments must pay attention to the conversion of the research achievements, in order to finalize the products which are basically ripe in technology, and encourage enterprises to break up the limit of departments and regions to form traverse combination for specialized production. Support the development of the backbone new energy enterprises should be given by the state step by step and according to schedules in the aspects of investment, cost and taxation. Set up an industrial system with mass production to increase product quality and reduce production cost and enlarge the market. National standard quality monitoring system should be established for product¡¯s standardization, and producing in a serial and universally. 

Along with the development of the new and renewable energy, related technical service system should set up and develop as soon as possible. Individuals and collectives who have conditions and ability should be encouraged to open new energy technological companies, and to contract technical services in the respect of selling, installation, testing and maintenance of the equipment. Strengthen technical instruction and training to the service companies in order to increase their service ability and quality.

Elaborate the International Cooperation, Introduce State-of-the-art Technology and Funds¡¡

It has been an international hot issue in the development and applications of the new and renewable energy. It is imperative to make full use of the present favorable chance to carry out international exchanges and cooperation while continuing the principle of self-independent development with introducing of state-of-the-art process and equipment discriminately in order to develop the new and renewable energy technology from a higher level. Further enlarge the field of cooperation, and strengthen the contact and cooperation with international organizations. Advocate bilateral and multilateral cooperation in research and production. Intensify exchanges of personnel, technology and information. Adopt feasible steps to attract international organizations, social groups, entrepreneurs and individuals to invest or open joint ventures or run solely foreign-owned enterprises in the field of the new and renewable energy .