Powerhouse China and The Renewable Energy Race — By Guest Blogger Kathy

Photobucket“China missed the first industrial revolution, missed the computer revolution, and the biology revolution – they want to be a leader in the green revolution,” said Steven Chu, Secretary of Energy. (Scientific American, “Is ARPA-E Enough to Keep the U.S. on the Cutting edge of a Clean Energy Revolution?” March 3, 2010).

And indeed they are rushing ahead. From nowhere, they are now the third largest producer in the wind power market and one of the fastest-growing in domestic wind installations. For the fourth consecutive year, says the World Wind Energy Report 2009, China doubled its wind installations, which is no small feat. While the U.S. was number one in world total installed capacity with China number two, China had the most share of new capacity in 2009 (13,800 MW to America’s 9,922 MW). The following chart, courtesy the World Wind Energy Association (WWEA) illustrates new capacity in 2009.
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China — Helping to Bring in Wind Power

PhotobucketWhat’s not to like about a $1.5 billion wind project covering 36,000-acre and generating the power for 180,000 homes in western Texas? For one, it rubs our nose in the fact that China is one of many countries that out-invests the US when it comes to renewables. The project is a joint venture that includes China’s Shenyang Power Group, which points out how much China’s own wind industry has grown, and reminds us of what Energy Secretary Steven Chu told Congress earlier this week: The U.S. is falling behind China and others in alternative energy investment.

But how shocking is the idea that China should aspire to be a world player in wind? “This is a natural progression,” says Harvard-educated Lou Schwartz, president of Pittsburgh-based China Strategies. “We need to avoid looking at this narrowly and saying ‘China’s up and we’re down.’ We have to welcome each other.”

Thus the reality we all need to face: the source of the renewable energy may be local, but the equipment to harvest it most certainly is not. I’m reminded of what Ray Lane, partner in venture capital firm Kleiner Perkins, told the audience in the “Business of Plugging In” conference a few weeks ago: The United States needs to cut the rhetoric and make real investments if it is to be a real player on the world renewables stage.