According to new data from the International Energy Agency, China consumed 2.25 billion tons of energy equivalents last year – nearly 4% more than the United States. With a population of 1.3 billion and rapid industrialization, it should come as no surprise that China plays an important role in the global energy market. While being labeled as the world’s largest energy consumer may not bring China the kind of attention it is looking for, instead of passively accepting the title, the country is using this opportunity to uncover emerging energy markets.
By 2020, China aims to draw 15% of its energy from sources other than fossil fuels.
China has become a major producer and consumer of alternative energy such as wind and solar power. According to the China Energy Research Society (NASDAQ:CERS), China has recoverable wind energy sources of 160 million kilowatts (kw), geothermal sources of 3.5 million kw and tidal energy sources of more than 20 million kw.
Under the strong support of government policies, China’s new wind power capacity ranks number one in the world and currently accounts for approximately 0.8% to 2.6% of the nation’s primary sources for energy. Wind power is expected to account for 11% of China’s total energy consumption in another decade. Wind energy companies like China Wind Systems, Inc. (NasdaqGM: CWS) are showing great return rates with second quarter net income up 69.8% and revenues up 39.7% year-over-year. To increase expansion, the Company is also in the process of negotiating with wind power clients to supply shafts and other forged products in the second half of 2010.
In a law passed in 2005 by the National People’s Congress, China’s top legislature, China set a goal to increase the share of renewable energy resources to 10 percent of China’s total energy consumption by 2020. Solar energy companies like Worldwide Energy and Manufacturing, USA, Inc. (OTCBB: WEMU) are seeing triple-digit revenue increases YoY. WEMU reported a 286% YoY increase in revenue for the second quarter of 2010. With its continuous expansion plan into Nantong, we expect higher revenue increases for WEMU within the next few years.
Disclosure: WEMU and CWS are clients of RedChip Companies, Inc.