Analysis on investment strategies in China: the case of biomass direct combustion power generation sector

To adjust the energy structure, protect the environment and deal with climate change, China has proposed that non-fossil energy would constitute 15 percent of the total energy consumption at the end of the 13th Five-Year Plan period (2016-2020), and the use of biomass would account for 4 percent of primary energy consumption. Firstly, the current situation, the internal environment and the external environment of the biomass direct combustion power generation are analyzed. Then, the financial model of biomass direct combustion power generation project is established, and contrasts with other major new energy projects are carried out in terms of operation models, opportunities and risks so as to explore the investment features of this project in depth. Finally, appropriate investment strategies are proposed with respect of the investors, and policy recommendations for the development of the industry are attempted as well. (C) 2014 Elsevier Ltd. All rights reserved.