China’s Secret Energy Reserve
NASA’s Terra satellite recently snapped a photo of something peculiar: part of eastern China swathed in smooth, unnaturally gray and white smog.
The image represents the clearest indicator yet that China’s pollution problem has escalated to a whole new level.
In the country’s 12th Five-Year Plan (FYP) drafted for 2011-2015, China pledged to move 11.4% of its energy use to non-fossil fuels. And since the nuclear disaster at Fukushima in neighboring Japan, most speculators have zeroed in on China’s nuclear power and the recovery of uranium.
As Investment Director, Karim Rahemtulla, mentioned on the tragedy’s two-year anniversary, there has been a lot to pay attention to in the nuclear sector.
There are other resources that China is tapping into that no one is talking about, though.
As China scrambles to meet its 11.4% non-fossil fuel goal, it’s increasingly turning to hydropower, as well.
Doubling Hydropower Capacity in Short Order
Every year, the Chinese increase their hydropower capacity by 15 gigawatts (GW). According to the International Hydropower Association, that’s enough wattage to power 12 million homes.
China’s most globally recognized hydroelectric dam, the Three Gorges Dam, sports 32 massive turbines that pump out 22,000 megawatts (MW).
Still, that only accounts for 1.7% of China’s energy use – a far cry from the desired 11.4% commitment.
So China is dead set on producing even more hydropower. In fact, the country aims to double its hydro capacity.
And there’s still time to jump the train to China’s hydropower revolution.
Cashing in on China’s Hydropower Buildout
Due to be completed next year, China’s next facility at Xiangjiaba on the Jinsha River is already slated to drive eight 800 MW turbines.
And according to Renewable Energy Focus USA, China has three more dams in the pipeline: Baihetan, Wudongde and Xiluodu, which will collectively produce 35.8 GW.
Keep your attention on Chinese companies involved in not only the investment of hydroelectric power, but in the construction, operations and management of power generation assets, and the production and sale of electricity power.
Bigger companies like Guodian Technology & Environment Group Corp. Ltd. and China Hydroelectric Corporation (CHC) will be calling the shots in the sector.
China will be looking to expand its hydroelectric excellence abroad, as well.
Companies such as Huaneng Power International Inc. (HNP) and Datang International Power Generation Co., Ltd. will be interesting to watch as China’s hydroelectric power begins to make homes away from home.
Bottom line: China’s biggest energy secret has revealed a wealth of opportunity – both at home and abroad. It’s time to get on board before it’s too late.
And “the chase” continues,