ABSTRACT
This chapter focuses on biofuels and biogas in particular, as the two sectors are at both ends of the government's incentive spectrum for biomass. Customers who enjoy the services of decentralised energy production bases would not have to share a supply on a limited number of large and remote power stations, but would rather benefit from energy sources produced locally that would also significantly reduce energy waste. The document shows that China has great ambitions in terms of renewable energy development For over 10 years, the government has been trying to encourage the establishment of market mechanisms in the electricity grid sector. Such a marketisation would theoretically have the effect of breaking the monopolistic situation of the grid giants, of encouraging competition among enterprises of the sector and, in the end, of improving efficiency. Aware of the dramatic proportions these issues could take on, in its 10th Energy Five-Year Plan, introduced two new pillars to the country's energy strategy.
