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Energy Sources, Part A: Recovery, Utilization, and
Environmental Effects
ISSN: 1556-7036 (Print) 1556-7230 (Online) Journal homepage: https://www.tandfonline.com/loi/ueso20
Current status and future prospects of renewable
energy: A case study
P. Balakrishnan, M. S. Shabbir, A. F. Siddiqi & X. Wang
To cite this article: P. Balakrishnan, M. S. Shabbir, A. F. Siddiqi & X. Wang (2019): Current status
and future prospects of renewable energy: A case study, Energy Sources, Part A: Recovery,
Utilization, and Environmental Effects, DOI: 10.1080/15567036.2019.1618983
To link to this article: https://doi.org/10.1080/15567036.2019.1618983
Published online: 15 Jun 2019.
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Current status and future prospects of renewable energy: A case
study
P. Balakrishnan
a
, M. S. Shabbir
b
, A. F. Siddiqi
c
, and X. Wang
d
a
Department of Electrical and electronics Engineering, Malla Reddy Engineering College for Women, Secunderabad,
India;
b
School of Management, Universiti Saints Malaysia, Gelugor, Malaysia;
c
UCP Business School, University Central
Punjab, Lahore, Pakistan;
d
School of Management, Dalian University of Technology, China
ABSTRACT
The aim of this study was to analyze renewable energy installed capacity of
developing countries by focusing on China as the leading country in renew-
able energy development to determine the reasons for growth or suspen-
sion of developments. Then, recent laws and policies of renewable energy
systems were discussed in developing countries, to analyze their policies
toward the use of renewable electricity. According to the findings, the most
important barrier to further renewable energy developments in such coun-
tries is the unwillingness of the private sector to make investments due to
considerable expenditures and the late return of capital. It was suggested in
this study that governmental supports and the guaranteed purchase of
generated electricity could resolve the problems to some extent.
ARTICLE HISTORY
Received 15 October 2018
Revised 5 March 2019
Accepted 14 April 2019
KEYWORDS
Energy; economy; policy;
capital cost; China
Introduction
Human requires energy for cooking, heat, lighting, and transportation in the daily life. Some of the
requirements are classified as basic needs, including heat and cooking. Currently, one of the most
important goals of developing countries is to supply energy, because there is a direct relationship
between economic growth and energy supply (Liu 2017a). Competition among countries for access
to more energy while supplying energy has led to environmental pollution that is one of the most
important global challenges caused by greenhouse gas emissions. Accordingly, developing countries
such as China and India have played the greatest roles in emitting greenhouse gasses. These
countries mainly use fossil fuels (e.g., petroleum, gas, and coal) to supply the necessary energy.
Nowadays, the use of fossil fuels to supply energy is the most important cause of greenhouse gas
emissions, the effects of which must be reduced by using other sources of energy (Liu 2017b).
Renewable energy is an acceptable alternative to fossil fuels because it is clean and can be used in
most parts of the world. Currently, there is a wide variety of renewable energy sources such as
hydropower energy, wind energy, solar energy, and biomass energy, each of which is dealt with in
detail in this paper. Despite the capabilities of such sources to supply electricity, it is not very
common to use them. Only a few countries such as China, Germany, and the USA have made major
investments in renewable energy development, and the rest of the world is still exploiting fossil fuels
to supply energy. The main reason for the unpopularity of renewable energy sources may be
complexities of renewable energy systems and implementation cost of the systems. Unlike renewable
energy sources, fossil fuels can be transferred to a reactor to produce heat, the steam of which can
rotate turbines and generate electricity. Nevertheless, renewable energy is increasingly being used,
whereas the use of fossil fuels is decreasing. Nowadays, scientists are seriously seeking a way to
CONTACT X. Wang wangxl3352@gmail.com School of Management; Dalian University of Technology, China
Color versions of one or more of the figures in the article can be found online at www.tandfonline.com/ueso.
© 2019 Taylor & Francis Group, LLC
ENERGY SOURCES, PART A: RECOVERY, UTILIZATION, AND ENVIRONMENTAL EFFECTS
https://doi.org/10.1080/15567036.2019.1618983
reduce expenditures and increase energy efficiency in renewable energy systems. Such methods and
techniques have encouraged more countries to employ renewable energy systems to produce energy.
China is one of the most important countries developing renewable energy systems. This country
plays a major role in the global economy but it is not considered as a developed country because
China’s GDP per capita is around USD 7000, which is too low to be regarded a developed country.
China now holds a higher position than other countries in terms of the development of renewable
energy systems. It is the most important member of the G5 and the second largest economy of the
world playing a major role in the global economy. China’s economy has been growing since 1978
thanks to an educated and inexpensive labor force and the reform of economic laws. According to
the reports made by the International Energy Agency (IEA), energy imports and CO
2
emissions
increased by 300% and 44%, respectively, that is caused by a 70% increase in the demand for
electricity from 2004 to 2009 (International Energy Agency, 2010). Increased demands for energy
and increased CO
2
emissions made the National People’s Congress (NPC) amend the Renewable
Energy Law in 2009 (that was passed in 2005) in order to provide the groundwork for renewable
energy development by increasing financial credits and financial exemptions.
This study aimed to analyze renewable energy installed capacity of developing countries with an
emphasis on wind, solar and hydropower energies. Due to the plenty of water resources and proper
geographic conditions, China has focused on wind energy, solar energy, and hydro-electric energy
more than the other types of renewable energy (China is the second largest country of the world).
Economics of renewable energies were also discussed after evaluating the current status and future
prospects of the key renewable energies (e.g., wind, solar and hydropower energies).
Renewable energy development
Hydropower energy
Hydropower energy is used more than other types of renewable energy in China. This country managed
to increase the hydropower installed capacity to 300000 MW in 2015. Compared to 2010, there was
a nearly 100000 MW increase (Li et al. 2018). In the past few years, China built more than 47000
hydropower stations, the total installed capacity of which was nearly 75000 MW (Li, Li, and Ji 2015). The
most important hydropower systems were established on Yangtze, Southeast Coast, and Pearl Rivers.
Most hydropower stations in China are located in the areas with the limited access to coal. These
provinces include Liaoning, Jilin, Zhejiang, Fujian, Jiangxi, Hubei, Hunan, Guangdong, Guangxi,
Chongqing, and Shanxi. The capacity of each hydropower system is greater than 1000 MW in these
provinces, which indicates high potential of these hydropower plants in generating electricity. In these
provinces, hydropower energy is the most important energy source after coal energy, especially in Fujian,
Hubei, Tibet, Yunnan, Hunan, Guangxi and Sichuan, where more than 30% of their electricity is
consumed from hydropower energy (The National Development and Reform Committee, 2008).
China has 13 hydropower stations, mainly located on large rivers such as Yangtze, Jinshajing,
Yalongjiang, and Daduhe, with an installed capacity of about 275.77 GW. The country intends to
build new hydropower plants and develop previous hydropower stations. Considering the climatic and
potential conditions of each station, priority is given to the development of hydropower stations on
Hongshuihe, Yangtze and Wujiang rivers. It also has long-term plans to build small hydropower systems.
Predictions show that technically exploitable capacity of small hydropower will be about 128 GW,
scattered over 1,600 mountainous regions. Compared to Central China and East China with 16.8%
and 15.6% shares of small-scale hydropower energy, West China with 67.6% share has more significant
share, mainly due to the concentration of most rivers and water resources in these areas (Hao, 2007).
Since these hydropower stations are mostly located in rural areas, development of small hydropower
stations can lead to their economic growth. By the end of 2005, small hydropower projects had a capacity
of about 38 GW, which accounted for 32.9% of the total hydropower generation capacity. So far, more
than 40,000 hydropower stations have been built in China supplying electricity for more than 653 rural
2P. BALAKRISHNAN ET AL.
areas. In 2005–2008, China launched a project to build more than 15 small hydropower systems, with
a capacity of more than 1,000 MW (The National Development and Reform Committee, the People’s
Republic of China 2008). Figure 1 shows the hydropower stations dispersion in China.
Wind energy
Another source of renewable electricity is wind energy. China has the largest wind energy installed
capacity in the world. In fact, it is considered as the leading country in wind power generation. It is
estimated that total exploitable wind energy capacity of this country is nearly 4350 GW, 200 GW of
which is allocated to offshore wind farms. According to the studies conducted by Green Peace, China
will be able to increase the wind power capacity to 230 GW by 2020, meaning that it prevents the
emission of 140 million tons of CO
2
and reduction of coal consumption by 150 million tons
every year. This capacity is 13 times as much as the capacity of Three Gorges Dam, located in
Hubei Province. It is also equal to the capacity of 200 medium-size coal power plants (Zhang and Li
2012). Estimates indicate that Sanbei Region in Northern China has the largest wind energy
potential. It covers the provinces of Heilongjiang, Jilin, Liaoning, Hebei, Inner Mongolia, Xinjiang
and some parts of Gansu Province. Of course, the wind energy density is variable like the other
countries and varies from 100 to 500 W/m
2
. The highest wind power density belongs to Sanbei
Region, Ala Mountains, Dabancheng, Huitengxile, and Chengde, reaching 500 W/m2. Figure 2
depicts distribution of wind energy density in China.
As shown in Figure 2, China has a high potential in wind energy resources. However, inappropriate
geographic distribution of wind resources, which is inconsistent with its power load profile, has deterred
the country from maximizing the wind energy exploitation. Northeastern coastal areas with high energy
Figure 1. Distribution of hydropower stations in China.
(http://www.circleofblue.org/2011/world/burst-of-new-dams-in-southwest-china-produces-power-and-public-ire/)
ENERGY SOURCES, PART A: RECOVERY, UTILIZATION, AND ENVIRONMENTAL EFFECTS 3
demands have fewer wind resources, while the northern areas with huge wind energy potential have
relatively low energy demand. This inappropriate distribution causes problems and difficulties in economic
development in the areas with less wind energy potential. In just a few urban areas, including Jiangsu,
Fujian, Shandong, and Guangdong, wind energy potential is consistent with energy demand.
Solar energy
China is a country rich in solar energy. Contrary to China’shigh potential for solar energy,
adaptation rate of households is about 193.4 kWh per 1,000 households, which is still low compared
to other countries such as Australia (385.2 kWh) (Mauthner, Werner, and Spork-Dür 2015). Despite
the low adaptation rate, solar power has developed in China so rapidly that the installed capacity of
solar PV reached 1200 MW with the development of large and medium scale solar farms during
eight years and introduced China as a leader country in solar energy in 2007. China’s share of global
solar power was reported to be about 35% this year. Only a year later, its installed capacity of solar
power reached 2000 MW representing an increase of 66%. According to the data provided by the
Chinese Weather Bureau (CWB), solar power potential is striking in this country, but irradiation
varies from place to place (Liu et al., 2010). Among the provinces of China, Tibet has the highest
potential for solar energy with an annual sunlight hours and annual radiation levels of 3200 and
6600–8000 MJ/m2. The annual irradiation in other areas averages about 5800–6600 MJ/m2. One
concern about the potential of solar energy to generate electricity is different daily irradiations and
different altitudes. However, nearly 67% of China’s space enjoys suitable potential to install solar
power systems. There are currently over 100 solar PV plate manufacturers. One of the most
important manufacturers is Wuxi Shangde, which is rapidly expanded due to the urgent need for
solar energy systems. It should be noted that with a yield of 82 MW in 2005, it reached 158 MW in
2006. This company is the fourth largest solar power system manufacturer after Sharp, Q-cell, and
Kyocera. Figure 3 portrays China solar PV capacity by province in 2015 and 2016.
Despite the high potential of solar energy in China, unfortunately, the role of this renewable energy
source in overall energy consumption is negligible. One of the reasons for the disagreement with solar
power is the imposed costs, which will be further explained in more detail. However, the most important
Figure 2. Wind energy installed capacity in China by province.
(https://www.greenbiz.com/article/chinas-wind-power-conundrum)
4P. BALAKRISHNAN ET AL.
reason behind the limited role of solar power in china’s energy outlook is the easy access to cheap coal.
More than 50% of the world’s coal is consumed in China. Coal also supplies 66% of China’s required
electricity (EnergyMatters 2015). Nevertheless, the decreased coal dependency not only reduces CO
2
emissions and improves the environment, but also accelerates economic growth.
Renewable energy economy
Figure 4 shows the cost of generating electricity by using renewable resources in 2010 and 2015 (World
Energy Council, 2016). This figure indicates comprehensive information on the development of renewable
energies from 2010 to 2015. There is no doubt that the electricity production cost decreased more than
most of the renewable energy sources; however, there are some exceptions to be addressed, too. Among
renewable energy sources, electricity cost of geothermal energy increased from 2010 to 2015 due to changes
Figure 3. China solar PV capacity by province in 2015 and 2016.
(http://www.paulsoninstitute.org/paulson-blog/2017/03/06/understanding-chinas-latest-solar-five-year-plan/)
Figure 4. renewable energy production cost.
ENERGY SOURCES, PART A: RECOVERY, UTILIZATION, AND ENVIRONMENTAL EFFECTS 5
of some parts and repair and maintenance of equipment. However, it is not possible to modernize
equipment because of the low efficiency of this source of energy. Moreover, the electricity production
cost of hydropower, offshore wind, and biomass resources did not show any significant changes between
2010 and 2015, because hydropower energy systems have long lifetimes. Therefore, it is not possible to
upgrade equipment due to technical constraints and high costs. Unlike other renewable energy sources,
there were significant improvements in solar PV and solar thermal sources from 2010 to 2015. In other
words, the solar thermal electricity production cost decreased from 0.331 USD/kWh to 0.245 USD/kWh.
There was also a 56% decrease in solar PV from 2010 to 2015. Thus, it can be concluded that solar energy
systems have improved more than other renewable energy sources with more rapid technological devel-
opments. Despite a significant decrease in the electricity production cost of solar energy systems, it is still
more costly than other renewable energy sources. For instance, the biomass electricity production cost was
nearly 0.055 USD/kWh in 2015; however, the solar PV electricity production cost was estimated to be about
0.125 USD/kWh, and the solar thermal electricity production cost was estimated nearly 0.331 USD/kWh.
Currently, China is focusing more on the development of wind energy systems mainly because of
appropriate lands and low costs of investment compared with other renewable energy sources. Figure 1
also indicates that the electricity production cost of solar energy systems will probably decrease, because
more electricity can be generated due to production of highly efficient solar panels and designing solar
collectors of variable angles. Thus, the process efficiency will increase.
Conclusion
This study aimed was to analyze renewable energy installed capacity of developing countries by
focusing on wind, solar and hydropower energies. Due to the plenty of water resources and proper
geographic conditions, China has focused on wind energy, solar energy, and hydro-electric energy
more than the other types of renewable energy (China is the second largest country of the world).
According to the findings, the most important barrier to further renewable energy developments in
such countries is the unwillingness of the private sector to make investments due to considerable
expenditures and the late return of capital. It was suggested in the study that governmental supports
and the guaranteed purchase of generated electricity could resolve the problems to some extent.
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