Recently, the Renewable Energy Committee of the China Circular Economy Association (CREIA) commissioned Ipsos to survey 3,000 consumers in ten major Chinese cities and found that Chinese consumers have an unprecedentedly strong desire to purchase "green electricity".
"Green electricity" refers to electricity generated from renewable energy sources such as wind, solar, and biomass. China's renewable energy sector has developed rapidly in recent years, with its cumulative installed capacity of wind power and solar photovoltaic power ranking first in the world. However, thermal power remains the dominant force in China's electricity structure, accounting for 74% of the country's total electricity generation in 2015, the majority of which is coal-fired. The resulting air pollution and carbon emissions have become a major concern for Chinese society. The survey results show that the Chinese public is highly concerned about air pollution, believes that "green electricity" helps reduce pollution, and is willing to pay higher electricity bills for it. However, whether consumer willingness can change China's electricity landscape remains unclear.
Across all cities, respondents expressed a high level of concern about environmental pollution. Over 40% of respondents said they were "very concerned" about the current environmental situation in China. Air pollution received the most attention, far exceeding the concern about climate change. Public attitudes toward "green electricity" seem to be related to their deep-seated aversion to air pollution. Over 90% of respondents believed that green electricity could reduce air pollution to some extent.
The survey shows a strong willingness among respondents to purchase "green electricity," with over 90% (97.6%) expressing a willingness to do so, and 40% (40.7%) indicating they would definitely buy it. Beijing consumers showed a stronger willingness to purchase than those in other cities. Correspondingly, the vast majority of respondents wanted to know the source of their electricity purchases through their electricity bills. Currently, Chinese consumers cannot choose the source of their electricity, preventing them from "voting with their money" to support clean and renewable energy development like some consumers in Germany and the United States. When asked if they would be willing to pay higher electricity bills for "green electricity," most respondents expressed support. Over 40% of respondents could accept an increase of more than 10 yuan per month in their electricity bills. The average monthly electricity bill for Chinese households is around 100 yuan. Previous studies have calculated that the Chinese public is willing to pay a considerable additional cost for cleaner air. This survey seems to further confirm this finding. Compared to consumers in Europe and the United States, Chinese consumers have a stronger willingness to consume "green electricity."
To achieve its climate targets, the EU requires its member states to meet the target of 20% of total energy consumption from renewable energy by 2020. In this context, a 2015 survey of UK household users found that nearly half (48%) of respondents were willing to purchase green electricity. Additionally, research by Riccardo Scarpa and others from the University of Waikato found that most British households are willing to pay more for green electricity, but the voluntary overpayment is not enough to support the high input of clean energy technology.
In 2013, market research in the United States showed that about half (52%) of Americans were willing to purchase green electricity. Previously, the National Renewable Energy Laboratory (NREL) compiled survey data from various power companies over the past two decades and found that while public interest in and willingness to pay for renewable energy exceeded that for other forms of electricity, public understanding of it was limited.
Liu Qiang, director of the Energy Department at the Institute of Quantitative and Technological Economics, Chinese Academy of Social Sciences, believes that the Chinese public's greater preference for green electricity is entirely understandable. "Because in China, people have a very deep understanding of environmental pollution, especially in the last one or two decades. It can be said that only the Chinese truly know how serious the problem is." However, Liu Qiang also believes that the public's consumption intentions have a limited impact on China's overall electricity structure. According to the China Electricity Council's "Annual Development Report of China's Electricity Industry 2016," residential electricity consumption in urban and rural areas accounts for only 13.1% of total electricity consumption. This means that the portion covered in this survey represents only a small portion of market demand. For industrial users, who account for more than 70% of China's total electricity consumption and face downward economic pressure, even a small increase in electricity costs is unacceptable. "If you calculate the proportion of electricity in the cost structure of large enterprises, the conclusion is clear," said an industry insider. "They can't stand even a penny increase in electricity prices."
“Simply raising prices for users is meaningless. The real solution to energy conservation and emission reduction lies not in price adjustments, but in addressing the entire energy system,” Liu Qiang emphasized. This is primarily a supply-side issue, not a demand-side one. In recent years, China's renewable energy development has faced a serious problem of “wind and solar curtailment,” restricting the share of renewable energy in the electricity mix. Peng Peng, head of the policy consulting department at CREIA, told China Dialogue: “Many local governments openly violate the provisions of the Renewable Energy Law regarding the ‘full guaranteed purchase of renewable energy electricity.’ For the sake of tax revenue, employment, and boosting the local economy, they prioritize thermal power, even at the cost of wasting large amounts of wind and solar power.” In 2015, the total “wind and solar curtailment” in China reached 38.8 billion kilowatt-hours, exceeding Hungary's total electricity consumption for the entire year of 2015. On the demand side, neither individual nor corporate users currently have the option to choose their electricity source; while on the supply side, the conflict of interests between power producers of different energy forms has never ceased.
For detailed survey results, please refer to the attached "Survey Report on Consumers' Willingness to Purchase Green Electricity".
Sources:Chinadialogue (2016-09-19) (Compiled by PIDC) Attachment file:Green Electricity Consumer Purchase Intention Survey Report.pdf
