Like the sustained rapid growth of China's economy, the development of China's new energy industry has attracted worldwide attention. However, behind the rapid development is a series of hidden concerns.

Although China's wind power industry has developed rapidly, its capacity utilization efficiency is not high. There are problems such as no value-added output, no installed capacity, no production capacity and no core technology. For example, in 2011, the proportion of wind power in the northwest power grid was close to 20%, and relatively good, such as the North China power grid, was also close to 14%. In 2012, the nation's total wind power was about 20 billion kWh. Affected by this, over 40% of China's major wind power equipment manufacturing enterprises are idle.

As the start of the domestic photovoltaic market lags behind that of product manufacturing, more than 90% of China's photovoltaic cells are used for export. Part of the reason for this situation is the rapid development of the global photovoltaic industry in recent years and the globalization model of industrial division of labor, which has enabled China to realize its cost advantage. However, due to the fact that China's photovoltaic cell development relied heavily on foreign markets, China's PV companies faced a serious crisis of survival when the EU and the United States implemented double countermeasures against China.

In addition to external factors, deviations in policy support, lack of enterprise innovation capabilities, and industrial development models that do not meet the technological level and market conditions are also important reasons. In the policy of promoting the development of new energy industries, China's support for equipment manufacturing is greater than the use of new energy. In particular, some local governments are keen to develop equipment manufacturing links in the new energy industry. They are keen to introduce large-scale new energy equipment companies and are keen to build new energy equipment manufacturing industry bases. The preferential policies for attracting foreign investment are mainly aimed at manufacturing enterprises, and there are few policies to encourage improvement of energy structure. The seven strategic emerging industry stimulus policies promulgated during the international financial crisis have prompted the irrational relaxation of the financing conditions of the financial sector, resulting in the unbalanced development of the new energy industry and the potential for excess production investment.

In addition, the development of new energy product manufacturers in China is more of a low level of repetition. No matter whether it is the government or the enterprise, the encouragement and investment in technology research and development are obviously insufficient. The local government lacks the requirements for the technological innovation of enterprises in attracting investment. Therefore, although the production capacity and output of wind power equipment and photovoltaic equipment in China are among the highest in the world, they do not have the relevant core technologies.

Starting the development of new energy sources from the user's side is a common practice in foreign countries. However, China still continues to develop in accordance with traditional energy sources and engages in large-scale centralized construction. As a result, the market is difficult to handle and inefficient. In addition, misconduct and lack of incentives are also one of the reasons for the underutilization of new energy in China. Judging from international experience, it is customary to set appropriate regulations and laws to force the grid to absorb new energy. Although China’s “Renewable Energy Law” stipulates that power grid companies must purchase renewable energy power in full, they are not properly controlled during implementation. In addition, the reform of the power system lags behind, and the information of enterprises and supervisory departments is asymmetric. It is difficult for the regulatory authorities to distinguish and decide on the reasons for abandoning the wind and discarding the light. On the other hand, China's power grid companies are lacking in the input of new energy power generation in terms of technology and safety. China lacks relevant economic incentives and incentives.

However, we must realize that the new energy industry still has great potential for development. The above issues are problems in development. We must not waste our food. We must continue to increase green support for the new energy industry, shift the policy focus to the consumption and use of new energy, increase the efficiency of new energy power generation companies, improve power dispatching and management methods, and increase fairness to the power grid. The supervision of access will form a market mechanism conducive to the development of new energy; improve the technical access threshold for the manufacture of new energy equipment, and put forward requirements for technological innovation in the investment of new energy equipment industry.

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