Promotion Of Renewable Energy Development In Zhejiang Province Based On Clean Development Mechanism (CDM)

Energy production and consumption are basic need and important composition in the sustainable development of economy and society. Although being relatively developed in the economy, Zhejiang Province has severe shortage of resources. In the process of economic and social development, Zhejiang Province has never been able to get rid of the dual constraints of the energy shortage as well as environmental pollution caused by energy production and consumption. Along with the rapid socio-economic development, the dual constraints will become ever severe.Focusing on the main issues of energy production and consumption in Zhejiang Province, the energy demand is forecasted by applying the ARMA time series model, the contradictions between energy supply and demand in Zhejiang Province are analyzed, and the conclusion is gained that the development and utilization of renewable energy is an effective solution to these problems. However, the SWOT analysis of renewable energy development in Zhejiang Province indicates that, because of inadequate market competitiveness, the renewable energy development is coped with obstacles as funds shortage and out-dated technology, etc.As "Kyoto Protocol" was put into action, Clean Development Mechanism (CDM) brings opportunities to renewable energy development, which is originally applied as the international cooperation mechanism of reducing greenhouse gas (GHGs) emissions. Based on the estimation of main renewable energy resources in Zhejiang Province, applying baseline methodology ACM0002, detailed calculation of CDM potential was made in the area of renewable energy power generated tied to the grid in Zhejiang Province by East China Power Grid baseline emission factors, and rough estimation of CDM potential in the other field of renewable energy following the principle of conservation of energy. Meanwhile, the comparison between actual programs and alternative is made by case study, to confirm that compared to non-CDM renewable energy projects, CDM renewable energy projects are obviously better in economic benefit and low in risk.As resolving the obstacles in renewable energy development, RE-CDM projects face its unique obstacles. Because of the uncertainty of international policy, the complexity of the international systems as well as the specific obstacles in the development of CDM projects, the government authorities, scientific research institutions and enterprises in Zhejiang Province are required to cooperate for strengthening the CDM capacity-building and indeed improving the capacity of project development.