China is focusing strongly on the development of new energy industry as it is having enough potential to revive the shrinking economy of the country.

China is bolstering the development of new energy industry. An official from the National Energy Administration revealed that a draft plan in this regard will be submitted soon to get the approval from the State Council, as reported by cctv.com.

China will increase its efforts to develop new and renewable energy such as wind power, hydro power, solar power and bio energy. Renewable energy, excluding hydro power, is anticipated to climb to the level of 6% of the total energy consumption as compared to current 1.5%. Wind power capacity is soon expected to reach 10 Million Kilowatts, growing 20 Million by 2010 and as much as 100 Million by 2020.

The country’s plan to develop new energy industry has adopted the opinions of major companies, various ministries and local governments. Now, as every move has been discussed comprehensively, the National Development and Reform Commission is prepared to present the final draft before the State Council.

With the economic growth remaining slow globally, the demand for energy consumption has dropped tremendously. In an effort to overcome the crisis and revive their economies, all countries are making intense efforts to discover new avenues for economic growth. In the process, the new energy industry is being largely considered as a driving force that may boost the economic growth.

Moreover, to have an edge in the international market (which is getting increasingly competitive), China is looking upon developing new energy, regarding it as an efficient way to improve the shrinking domestic demand. The new energy policy of the country have witnessed certain optimistic reforms, leading the country’s wind power, nuclear power and hydro power into a new phase of development.

The scale of funds Chinese government is investing in clean energy has surprised the entire world. But still there is immense need to pay more attention towards the development of clean energy like solar power, wind power, hydro power and biofuels. And in this, energy price reforms would have an important role to play.

According to a Research Analyst at RNCOS, “In the face of global economic recession, China has got an opportunity to make shift in the direction of growth of its energy industry. At this moment of time when there is relatively low energy demand, China needs to speed up its energy adjustments and transform the way in which the power is supplied in the country.”

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