'Renewable Energy Won't Need Govt Subsidy'

A top Chinese energy official said on Monday that future development of renewables such as wind and solar power will not need state subsidies thanks to sharply falling cost brought by technological advances.

"There is generally no need for the government to subsidise wind, solar and other new energies. They will primarily be driven by the market," said Zhang Jianhua, director of China's National Energy Administration told reporters.

"The biggest issue is how to best utilise these new energies," said Zhang.

Zhang also said that recent power shortages in some Chinese regions are singular cases and the nation's energy supplies including power is generally secure.

Power consumptions surged in recent weeks in Hunan, Jiangxi and Zhejiang provinces in central and eastern China, as cold snaps lifted heating demand and accelerating industrial activities boosted power load.

In a concurrent release of its energy white paper, China pledged to fully lift access restrictions on foreign investment in coal, oil, gas, power generation, excluding nuclear, as well as the new energy businesses. It did not elaborate. (Reuters)