China's Renewable Energy Stimulus Sends Solar Stocks Skyrocketing
Photo via the Guardian
Say that three times fast. China just announced that it is drafting a stimulus plan to boost its renewable energy industries. Perhaps inspired by some other nation that recently decided to use government funding to bolster a fledgling renewable energy industry, China's plans immediately boosted the country's biggest solar and wind power companies' stocks. So what's China's big renewable energy plan?Details are vague, but most likely the plan will hinge on providing more government subsidies to renewable energy companies. Just the announcement that a plan was being drafted was enough to cause a stir—the country's biggest manufacturer of wind turbines saw its stock jump 10%, and solar product makers saw gains from 4-9%, according to Bloomberg.
The plan is designed to help the nation meet its alternative energy goals:
The nation aims to boost usage of renewable energy to 10 percent of total energy consumption by 2010 from 7.5 percent in 2005. Solar power capacity will rise to 300,000 kilowatts from 70,000 kilowatts.
This is welcome news. As you might've heard, China isn't the cleanest country around when it comes to energy:
China, the world’s second-biggest consumer of energy, derives 80 percent of its electricity from burning coal.
We'll keep our eyes peeled for the plan when it's released—hopefully it'll spur the seedlings of renewable energy revolution, as has happened here in the states.