Taiwan passes major green energy bill

Taiwan has passed a bill on renewable energy in a move which is expected to attract NT$30 billion (US$937 million) worth of investment. Parliament on Friday [12 Jun 2009] approved the bill, which is aimed at adding 6,500 to 10,000 megawatts of installed energy from renewable sources over the next 20 years. Currently, Taiwan has only 2,278 megawatts, or 5.8% of installed capacity, from renewable sources, according to the state-run Taiwan Power Co. The bill is estimated to create more than 10,000 jobs and is part of the government's plan to reduce carbon dioxide emissions to 2008 levels by 2016, and to 2000 levels by 2025.

- Good initiative, reminiscent of the efforts of Sweden and France which are also moving in this general direction, though perhaps not as wholly ambitious as them. We're seeing countries all around the world starting to make firmer commitments to clean energy, and we would also want to keep in mind that oil-producing countries such as Australia, Mexico, Norway and the UK which are coming to grips with their own Peak Oil issues ought to be quite keenly aware of the need to move away from fossil fuels as well.

If you are an investor, it might be a good time to look at clean energy companies, and one good way to buy into this sector is through PBW, the PowerShares WilderHill Clean Energy ETF. It's got a mix of companies in various sub-sectors including solar, materials, batteries, fuel cells and such. It's even got an ocean power company and a geothermal company. As a fund manager myself, I'd say that's a pretty okay mix. Perhaps I might add a bit more wind energy, and I wouldn't rule out nuclear energy either, though that might probably have an asset allocation of its own.

China car sales jump beyond imagination with 2-month wait

bloomberg.com :

Zhao Hang, who helped devise China's auto-stimulus package, is facing demand from car buyers battling an unexpected consequence - two-month waiting lists. Zhao said : "Given the world economic situation, demand for cars is surprisingly strong in China." Beijing drivers, used to leaving showrooms with new cars the same day, now have to wait 3 weeks for a Hyundai Yuedong Elantra, China's bestselling car, or as long as 8 weeks for a Honda CR-V. In May 2009, passenger-vehicle sales surged 47% from a year earlier.

Auto sales have surged after the government offered subsidies and cut retail taxes as part of a 4 trillion yuan ($585 billion) economic stimulus plan. Combined with a 37% slump in US auto sales, the surge has made China the world's largest auto market. Beijing Hyundai ran plants at near-full capacity last month, while Honda's two China ventures have been running with three shifts because of demand for models including the Honda City and the Honda CR-V, the bestselling SUV in China.

- This is quite a contrast compared to the recent GM and Chrysler bankruptcy filings. Whilst the American car-makers seem unable to shut down fast enough, half a world away, the Chinese automotive industry seems unable to churn out new cars fast enough. Like that guy said, it's kind of surprising given how a pretty big chunk of China's economy is export-oriented and exports are supposed to be falling what with the global recession and all. It remains to be seen how much of this demand is for real and how much of it is just a temporary boost from their economic stimulus plan.

(2009-06-15 19:31:54 SGT) [Energy] Permalink

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