DOW Chemical Co plans to beef up its research and development activities on renewable energy in China to capitalize on the country's ever-growing appetite for clean energy, a company executive said.

"Imports now account for 55 percent of China's energy consumption. As China's economy is expected to maintain an annual growth of eight to 10 percent in the next decade, the nation will continue experiencing an energy shortfall," said Yao Weiguang, chief technology officer of Dow Chemical Asia Pacific. "Renewable energy will be an essential means to sustain China's energy supply."

Yao said Dow would open two or three photovoltaic R&D and application laboratories in Shanghai next year. The company remained confident about the long-term prospects of China's photovoltaic industry in the coming years as the country had to rely on renewable energy to meet domestic energy demands, he added.

China accounts for half of the world's solar panel production, of which 95 percent is exported to the Europe and the US. The domestic photovoltaic industry is now coping with an output glut, which has been exacerbated by a probe by the Obama administration on alleged "dumping," which could turn into a trade war between the two countries.

"To address the output glut and support the domestic industry, one of the best solutions is to install more solar panels at home," Yao said.