Renewable Energy Trade with China --- How do we pass through the way to get benefits? Ben Niu Massey University

Outline: Renewable energy trade Basic conditions of trade Power and effect factors Problems during trade process Discussion and conclusion Definition and classification Trade contents Case studies Discussion and prediction

Purposes: “Are there chances in renewable energy trade?”  Renewable energy trade contents  Trade bases  What are differences on the renewable energy industries?  What are barriers?  How do we solve and predicate the problems

Research methods Comparative analysis of present situation of renewable energy industries of New Zealand and China To research the reasons of differences on the renewable energy applications

Definition and classification Renewable energy Renewable energy equipments Equipments related to renewable energy Paid technology transfer

Renewable energy trade 1 Directly renewable energy trade renewable energy products Biomass (pellets, bio-diesel, fuel alcohol, and others)

Renewable energy trade 2 Special equipments for renewable energy production (directly change energy forms). Wind Solar-E (solar-thermal, PV) Hydro- (on the sea, and on the ground) Biofuel Geothermal

Renewable energy trade 3 Related equipments for renewable energy Control electronic devices Computer system Storage devices (batteries, tanks…) Gensit or flywheel engine

Renewable energy trade 4 Paid technology (intellectual property) transfer Direct transfer (the technology used on commercial products) New technologies New product design Indirect transfer (the technology is developing ) Collaborated results compensable utilities

Base of renewable energy trade Differences of developed renewable energy industries Different requirement of energy forms Price competition How to find market of product on the other side

Differences Policy and strategy of governments Environment and resources (In case studies) Industry structure of renewable energy Technology standards

Energy Consumption New Zealand Energy and Renewable Energy (from (2003)

Energy Consumption China Energy and Renewable Energy

CHINA ENERGY DEVELOPMENT (first energy resources)

2020 aim of China renewable energy Renewable energy rate will be 16% of total energy production China turns to renewables to solve needs Monday July 17, 2006 By Alison Leug HONG KONG - China is set to spend US$200 billion ($322 billion) on renewable energy over the next 15 years and industry players are racing to grab a slice of the action.

Policies of China for development and deployment of renewable energy production (2020) Hydro electricity generator ability: 300,gW Wind electricity generator ability : 30,gW Biofuel electricity generator ability : 30,gW Solar electricity PV ability 1.8gW Solar thermal collector 300 Mega square meter Biogas: 44.3 Giga-cube-meter Fuel Alcohol 10 Mega-t Bio-diesel 2 Mega-t

Projections of NZ for development and deployment of renewable energy production (2020)

Main differences to promote trade Difference 1 - Policies of New Zealand and China for development and deployment of renewable energy production  Research and development Difference 2 - Present situation of equipment manufactures

Secondary factors Difference 3 - Features of local resident energy consumption Difference 4 - Characteristic of renewable energy resource and environment

Other factors f. Environment protection pressure g. International policies "Kyoto protocol" and "Clean Development Mechanism (CDM)” “CO 2 trade market” *However, the projects is not restricted on NZ and China

Products trade process problems between China and New Zealand (1) a. Trade process - Information - Ease of exporting and importing products - Customs classifications - Import restrictions b. General commercial and technological standard of products - Between China GB and ANZ standards (or AS) - Labeling of products is an important part of controlling imports

Products trade process problems between China and New Zealand (2) c. Efficiency of economic comparing with manufacture d. Service and insurance e. Changing, saving and compensating value to traditional real estate reformed on renewable energy

Products trade process problems between China and New Zealand (3) f. Environment conservation and effects g. International policies "Kyoto protocol" and "Clean Development Mechanism (CDM)” h. Education and training i. Commercial propagation

Solution methods (with case studies) Manufacturer provide on the user requirements Intermediate trade agent Collaboration developing new types

Outline: Renewable energy trade Basic conditions of trade Power and effect factors Problems during trade process Discussion and conclusion Definition and classification Trade contents Case studies Discussion and prediction

Commercialized equipments in renewable energy industry Hydro turbine-generator (river and tide) Gas turbine-generator (geothermal) Wind turbine-generator PV Solar-thermal collector (solar water heater, solar air heater)

Special developed equipments (Ocean wave, OTEC, High-T Solar thermal collector…) “Pre-commercialized equipments” that they do not have a stable standard of energy transfer equipments or partly Price depend on research costs And “Intellectual property”

Case study 1 (Example 1) SOLAR WATER HEATERS - Industry and product differences - Trade process description - Main barriers discussion - Benefit and unfavorable

Case study 2 (Example 2) Wind turbine and control system Market investigation for comparing New Zealand “windflow” to China and Chinese small wind turbines in New Zealand’s RAPS Market. The problems on trade process Discussing the trade ways a. New Zealand requirements and trade ways b. China requirements and trade ways Predication the trade approaches

Case Study 3 (example 3) China PV and related products affect New Zealand’s solar electric market trends Market portion Utility, service and insurance Advantage and disadvantage to compare with other country PV

Case Study 4(?) (Example 4) Cooperation research on geothermal or biofuel technologies and intellectual property paid transfer – Feasibility study – Problems on the intellectual property paid transfer – Benefits and trends

Outline: Renewable energy trade Basic conditions of trade Power and effect factors Problems during trade process Discussion and conclusion Definition and classification Trade contents Case studies Discussion and prediction