China has great potential for biomass energy development, but policy support is insufficient
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Researcher Yuan Zhenhong, director of the Biomass Energy Committee of the Chinese Society for Renewable Energy, pointed out in the report \"Analysis and Recommendations on China’s Biomass Energy Policies\" that the biomass energy sector in China holds great potential. The current annual utilization of biomass energy can replace 50 million tons of standard coal in terms of fossil fuel consumption, and the installed capacity for power generation is set to reach 13 million kilowatts by 2015. Among them, the annual utilization volume of biogas is 22 billion cubic meters ； The annual consumption of biomass briquette fuel is 10 million tons ； The annual consumption of biofuel ethanol is 3.5–4 million tons ； The annual consumption of biodiesel and aviation biofuels is 1 million tons. Regarding biomass power generation policies, China has now defined specific areas for this purpose: these include power generation from agricultural and forestry residues, waste management, livestock and poultry manure, as well as industrial organic waste and organic wastewater. For grid sales, the electricity generated by biomass power plants can be sold in its entirety to the grid, with power grid companies accepting the full volume of electricity supplied by these biomass power plants. The electricity price for biomass power generation has been set at a uniform national rate of 0.75 yuan per kilowatt-hour, while the price for waste-to-energy power generation is 0.65 yuan per kilowatt-hour. However, judging from the specific policies and implementation outcomes in various biomass industries, the results are rather disappointing. Among them, the available amount of livestock and poultry manure is 840 million tons, with an utilization rate of 35.7% ； The amount of organic waste that can be utilized in urban areas is 75 million tons, with an utilization rate of 37.3% ； The available amount of crop straws is 340 million tons, with an utilization rate of 2.4% ； The available amount of forestry wood residues is 350 million tons, with an utilization rate of 0.9% ； The available amount of resources from agricultural product processing residues is 60 million tons, with an utilization rate of 3.34% ； Furthermore, the utilization rates of organic wastewater and waste residues are only 0.6% and 5.1%, respectively.
In Yuan Zhenhong’s view, when considering the development of biomass energy from the perspective of **top-level design, there are still many shortcomings. If the intensity of subsidy policies and their promotion efforts remain insufficient, the stability of raw material supply cannot be ensured ； The tools available for tax policy are also insufficient ； Financing channels remain problematic ； Lack of technical and industrial standard systems ； There is also a lack of sustainability in policy formulation and implementation ； The management system and implementing agencies are unclear. In response, Yuan Zhenhong suggested that fiscal and tax incentives for the biomass energy industry should be gradually strengthened to ensure the continuity and stability of relevant policies ； Strengthen biomass comprehensive utilization technologies to establish a diversified product portfolio ； By introducing mandatory market share policies such as a tradable quota system, a rational biomass energy consumption market can be developed ； Enhance the market competitiveness of biomass energy production enterprises, thereby promoting the development of biomass energy technologies and industries.
**There are many policies in place; subsidies for rural biogas digesters used to range from several hundred thousand to 1 or 2 million, and now the maximum subsidy for such projects seems to be 50 million, which is indeed a significant amount. The problem is that these subsidies ultimately end up being a way for certain people to make money, without the projects actually being implemented
If one keeps demanding subsidies, it’s better to direct resources to areas that need them more.