China leads the world with over 100 million riding e-scooters, e-bikes, and light-electric vehicles. By December 2015, China plans to have 500,000 electric vehicles that can travel slow streets to fast highways. Those EV will be supported with 220,000 charge points and 2,351 battery swap stations in the nation’s latest plans. China’s 12th Five Year Plan is summarized in a new Deutsche Bank (DB) report.
China will move to a more efficient lower carbon economy not only with electric cars and electric scooters. China is expanding electric transit and rail. For example, electric high-speed rail is targeted to expand by 29,000 miles between now and 2015. China high-speed rail is already more extensive than the mid-speed U.S. Acela system that supports daily riders in New York, Boston, Philadelphia, Washington DC and other Eastern cities.
Over the next five years, China will reduce its percentage of transportation that requires foreign oil for gasoline and diesel. China will also reduce the percentage of electricity generated by coal. By 2015, China will add:
- 70 GW wind
- 120 GW hydro
- 5 GW solar
- 40 GW nuclear
China plans to lead the world in using renewable energy. Although the Japanese nuclear disaster occurred as the 12th Plan was being drafted, China appears to be moving ahead with Generation IV nuclear which it views as safer than the Japanese plants built over 30 years ago. For example, Huaneng, China, is proceeding with the construction of a 200MW high-temperature gas-cooled reactor according to the DB report. More cost-effective natural gas plants, however, may yet be substituted for half of the planned nuclear expansion.
China is likely to easily meet its 70GW wind 5-year target. It installed 25GW of new wind power in 2010, in comparison to only 5GW in the U.S. China’s wind installations grew faster than grid connection, with 10 percent of new wind not being grid connected. China Wind Renewable Energy World Report
$76.7 billion will be invested in new ultra high-voltage grid transmission to support the added capacity of new power according to the 12th Plan.
These investments will directly benefit China and support Chinese ambitions for Chinese global leadership in technology of the future. The 12th Plan identifies 7 Strategic Emerging Industries:
- Clean Energy Vehicles
- Energy Conservation and Environmental Projection
- New Energy
- New Materials
- High-end manufacturing equipment
- Next-gen IT
Disclosure: author owns stock in Chinese wind, solar, and HSR companies Trina Solar (TSL), Goldwind (2208.HK), Ming Yang Power (MY), CSR Corp (1766.HK), China High Speed Transmission (CHSTY), and Zhuzhou CSR Times Electric (3898.HK).