The Chinese Government has been attaching great importance to the development and utilization of renewable energy for many years.  In the 1980s, the State Council issued Several Recommendations on Promoting the Development of Rural Energy, which made renewable energy a part of the plans for the development of rural energy and rural electrification.  With the maturation of renewable energy power generation technologies, particularly wind power technologies, in 1994, the then Ministry of Power issued Several Recommendations on the Construction and Management of Wind Farms, establishing a firm foundation for wind power in China.  In 1999, the Chinese Government issued Several Policy Recommendations on Promoting the Development of Renewable Energy, making further progress in removing barriers to the development of renewable energy.  In 2003, the Government began to set about formulating its Promotion Law for Renewable Energy Development and Utilization. 

The goals of this law will be to:

(1)   confirm the important role of renewable energy in China¡¯s national energy strategy;

(2)   remove barriers to the development of the renewable energy market;

(3)   create market space for renewable energy;

(4)   set up a financial guarantee system for the development of renewable energy;

(5)   and create a social atmosphere conducive to renewable energy. 

The basic principles of the law will reflect the integration of:

(1)   citizen obligations and Government responsibilities;

(2)   Government promotion and market guidance;

(3)    present needs and long-term development goals; and

(4)   international and domestic experience.

Through the means of this legislation, the following critical systems will be set up:

(1)     a system of Government responsibility, requiring the Government to formulate development targets, strategic plans, and guarantee measures for renewable energy;

(2)     a system of public cost sharing (realized by a grid cost-sharing system), whereby all citizens will be required to share the extra costs associated with developing renewable energy; and

(3)     a system of punishment and reward, which will encourage the entire society, particularly companies, to develop and use renewable energy, and will punish financially those companies and individuals that do not meet the obligations set out for them in the law. 

(4)     At present, the National People¡¯s Congress has already initiated procedures for formulating China¡¯s Promotion Law for Renewable Energy Development.  It is expected that the law will be formally promulgated in 2005.