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Energy efficiency boosts China's green shift

Updated: 2012-10-31 11:47
( Xinhua)

Already, China is the world's leading maker of wind turbines and solar panels, and its largest market for wind power. Were energy prices to rise, thereby making it more expensive to use CO2-emitting fossil fuels, the appeal of renewable energy would likely increase.

Denmark is a successful case in point: its economy has grown 78 percent since 1980, while keeping energy consumption more or less constant, and slashing CO2 emissions.

The quest for energy efficiency and renewable power has led it to develop a world-class on-and-offshore wind-turbine industry, and a host of other companies specializing in clean technologies and environment-friendly solutions. Wind power itself is expected to contribute 50 percent of Danish electricity production by 2020.

Urban heating

Danfoss typically manufactures products that improve energy efficiency of everyday equipment such as electric motors, refrigerators and technology for district heating networks, where heat generated by electricity plants is piped for heating homes and office.

Christiansen believes the latter technology can have rapid, widespread positive impact in China's urban areas by cutting energy use, improving energy efficiencies by utilizing waste heat, and thereby cutting power costs for consumers.

Along with local authorities, Danfoss recently rolled out a modern district-heating network in Anshan city, Liaoning province. Under the plan, local homes are switching from heat supplied by old, small boilers, and are instead receiving waste heat piped from a nearby steel plant.

"Previously, that waste heat was simply dumped, lost in the air, and now it is utilized to provide heating comfort for one million people," Christiansen said.

Over time, such projects could make ordinary people more aware of their energy consumption, not least as they receive cheaper energy bills, and thereby understand the benefits of a green economy.

"That is another important element in the transition: to make the population aware of the benefit of being more efficient with energy," Christiansen said.

The total cost of the Anshan city district heating scheme, where Danfoss is the project's biggest technology provider, is around 400 million CNY ($64 million). While consumers access a stable heat source, the steel plant earns on what was previously a waste product, and the city authorities make energy and cost savings.

Christiansen said this model could be replicated around China as one "can probably find 50 or 100 cities with the exact same needs".

Although the necessary skills and technologies to implement such schemes already exist in China, the core infrastructure around energy networks needs to be developed to spur green growth.

Furthermore, project finance would have come from national or local governments, although public-private partnerships could be a future investment alternative, Christiansen added.

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