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UTILITY WEEK | 4TH - 10TH SEPTEMBER 2015 | 23 Markets & Trading ing with Chinese leaders to facilitate just that, hoping to cash-in on China's plans to develop 30GW of offshore wind by 2020. Despite a deceleration in its economy last year – which has continued into 2015, caus- ing mounting concern in global markets – China has simultaneously experienced a dramatic increase in renewable energy investment across a range of technologies. In 2014 the renewables investment growth rate hit 31 per cent with $89 billion invested in projects. According to the US Energy Informa- tion Administration (EIA), this made China the world's leading investor in renewable energy, a trend it says is likely to continue. Sizeable investments are expected through the next five-year period to help China reach its strategic renewable energy and carbon emissions goals. So, China looks to be rapidly transform- ing from the world's most carbon-intensive industrial powerhouse to a mature (slower growth), less export-intensive economy with a sustainable renewables-based energy sys- tem. But is this really the case? According to China's National Energy Administration, the number of wind turbines sitting idle in China rose nearly 7 per cent in the first half of 2015, compared with the same period last year. As with many countries, China's electric- ity grid has found it is coming under strain from new intermittent renewable capac- ity. Coupled with an increase in coal-fired capacity and a dip in the rate of electricity consumption growth, this has meant the demand for wind power has decreased. The region of Jilin alone saw 2.29 billion kWh (43 per cent) of wind power sit unused in Q1 2015. Grid operators have therefore begun slow- ing the connection of turbines to the grid and limiting the use of wind power, which is leading to wasted capacity and lower returns on investment. So, despite investments and projects which seem impossibly ambitious compared to figures quoted in relation to the UK's small-island aspirations, China is le with significant energy security and decarbonisa- tion challenges. It remains the world's big- gest emitter of greenhouse gases – a status it had the dubious honour of claiming in 2007. In the run-up to the UN Climate Change Conference in Paris, ahead of which China committed to cut its greenhouse gas emis- sions by 60-65 per cent (against a 2005 baseline) by 2030, China needs to get its emissions down a lot further. Increasingly, it will therefore be looking around the world for those that can help it do so quickly. KEY NUMBERS ON SUPPLY, 2013 863GW installed fossil fuel capacity 43GW installed natural gas capacity 280GW installed hydroelectric capacity 76GW installed grid-connected wind capacity 91GW absolute wind power capacity 15GW solar power capacity 100GW target capacity for solar power by the end of 2020 30GW target biomass capacity by 2020 Q&A Alfred Chan is the managing director of the Hong Kong and China Gas Company, otherwise known as Towngas, the sole provider of natural gas in Hong Kong. It supplies gas to 85 per cent of Hong Kong households, as well as commercial and industrial customers. This year, he won the Leadership Award in Igem's Gas Industry Awards 2015 . Do you see a place for natural gas in China's future energy mix? Our major market is in China. The actual commercialised use of natural gas only has a history of about 15 years. The infrastructure has been built for high-pressure transmission pipelines, the import of LNG is being developed and a trading platform has been set up so the gas market has become more open. That gives opportunities for companies like us, which aren't state-owned, to move into the market. What are the main differences between the UK and China in terms of their use of natural gas? China as a country has got a smog problem, which the UK doesn't have today. Only 6 per cent of the energy use in China comes from natural gas, and in the UK this is 35 per cent. The infrastructure in the UK has been well developed; China has got a lot of infrastructure expansion [to do]. Once you expand the network, you reach new markets. The only way for China will fulfil its strong greenhouse gas emissions reduction commitments is to use natural gas. How can natural gas be used to reduce China's carbon emissions? There are a lot of toxic emissions, so how can China turn this around? Of course, you can use a lot of renewables: solar, wind, maybe nuclear, but today, natural gas seems to be the natural choice. It is the cleanest fossil fuel and it is abun- dantly available globally. China has committed to reduce its greenhouse gas emis- sion intensity by 40 per cent by 2020, measured from 2005. That is a very strong commitment and the only means they can achieve it is to use more natural gas. Is there anything the UK gas market can learn from China? I probably wouldn't use the word "learn", but opportunities are there in China, and the UK has got so much expertise because of its five or six decades of natural gas development. There's a lot of quality training, equipment sales, and upgrad- ing of systems for China. That kind of opportunity is out there. So if UK people, knowing their own domestic market is quite limited… I'm not saying that they should abandon it, but they have another opportunity in China. Alfred Chan managing director, Towngas. Miracle unravelling? The Shanghai Composite stock market fell by more than 8 per cent on two consecutive days on 24 and 25 August despite a shock currency devaluation the previous week to boost the economy. The government has abandoned its efforts to shore up share prices by buying stock and has cut interest rates and increased banks' liquidity. At the time of going to press, it is unknown whether these meas- ures will work, and what the effect will be in China and the rest of the world if they don't.