Chinese top legislature, 14th sessions of Standing Committee of the National People's Congress voted and passed the renewable energy law on 28th February, 2005 to ease the energy strain, secure the country's energy security and better protect ecological environment. President of the People's Republic of China Hu Jintao signed and announced this law.

In 2003, China's renewable energy consumption accounted for only 3 percent of the country's total energy consumption. The government plans to lift up the figure to 10 percent in 2020.

According to the law, renewable energy includes hydroelectricity, wind power, solar energy, geothermal energy and marine energy, all of which should be taken consideration in the state and local development plans.

The law offered a series of favorable policies for developing renewable energy. For instance, the law demanded all state grids to purchase renewable energy, even though the cost is high. In this way, people's enthusiasm of developing renewable energy could be enhanced.

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