It appears that China is taking cues from the United States when it comes down to government subsidies and stimulus for renewable energy markets. Partially due to the economic crisis that began in the U.S. and spread abroad, China has decided to spend nearly $600 billion to stimulate its own economy and to encourage more sustainable energy usage.

Although the country’s energy plan is yet to be drafted, the intention to make such a plan has already boosted renewable energy company stocks to excitable levels. A majority of the plan will most likely be designed to specify government subsidies aimed at energy manufacturers who are helping China meet the goal of running on 10 percent renewable energy sources by 2010.

Photo Credit: mjmonty

China has already been acknowledged as encouraging wind power within its borders, but the new plan is aimed at including pv and other solar industries to widen their renewable energy net.

Not only will the Chinese government be financially encouraging energy companies, they are also setting forth provisions to promote the distribution and purchase of Chinese-made electronic goods. Whereas before most of their manufacturing efforts were made specifically to be exported to the U.S. and other nations, China has experienced a drop in export demands and has decided that its own economy would benefit from having more Chinese goods remain in China homes.

Naturally, the items they ship here to the U.S. that they will now be keeping for themselves are mainly energy-users: televisions, radios, computers, etc. The plan to manufacture domestically retailed goods will be a major boost to the Chinese economy (their export business did nothing for them, save increasing the American tab, which isn’t likely to get paid off anytime soon), which, in turn will help the nation raise funds for putting their renewable energy stimulus plan into action.

As the world’s second largest energy-consuming nation, China’s new plan is one that would alleviate energy woes felt all around the planet.

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Posted on May 7th in Solar News by Jennifer.