At current growth rates, the report says China will likely achieve - and probably even exceed - its target of obtaining 15% of its energy from renewables in 2020, up from 8% currently. By 2050, it could even reach 30%, according to the report, "Powering China's Development: The Role of Renewable Energy", published on 14 November.
"More than $50 billion was invested in renewable energy worldwide in 2006, and China is expected to invest over $10 billion in new renewables capacity in 2007, second only to Germany," the report points out.
It says a combination of ambitious targets, strong government policies and the manufacturing performance of Chinese companies could enable China to quickly "leapfrog" competitors in industrialised countries.
"A combination of policy leadership and entrepreneurial savvy is leading to spectacular growth in renewable energy, increasing its share of the market for electricity, heating, and transport fuels," said Eric Martinot, a Worldwatch senior fellow and co-author of the report. "China is poised to become a leader in renewables manufacturing, which will have global implications for the future of the technology."
Chief among those is wind power, "the fastest-growing power generation technology in China," according to the report, which notes a doubling in installed capacity in 2006 alone. But China is also catching up fast in solar, where the country is already leading the hot water market with 40 million solar systems installed - nearly two thirds of global capacity. "More than 10% of Chinese households rely on the sun to heat their water," the report points out, saying the figure could rise to one third by 2020.
In Europe, the next frontier in terms of wind power is offshore, with projects in the North Sea tipped to boost installed capacity and help resolve the intermittency issue with more stable wind conditions.
But EWEA, the European Wind Energy Association, says more could be done on the policy side. "Certain issues need to be addressed, such as those related to grid extension, operation and reinforcement and to R&D in some fundamental areas," EWEA said, adding that "a European policy for offshore wind energy is needed."
