Energy policy of China

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The 22,500 MW Three Gorges Dam hydroelectric power plant in China, the largest
hydroelectric power station in the world.

China's primary energy production and consumption 1980 to 2011
Ensuring adequate energy supply to sustain economic growth has been a core concern
of the Chinese government since 1949.[1] The country is the world's largest emitter
of greenhouse gases, and coal in China is a major cause of global warming.[2]
However, from 2010 to 2015 China reduced energy consumption per unit of GDP by 18%,
and CO2 emissions per unit of GDP by 20%.[3] On a per-capita basis, it was the
world's 42nd largest emitter of greenhouse gases in 2014.[4]

China is also the world's largest renewable energy producer.[5] China is the
largest producer of hydroelectricity, solar power and wind power in the world.

Energy policymaking in China is largely decentralised. There has been no Ministry

of Energy since it was dissolved in 1993, and it was only in 2002–2003 that serious
governmental dialogue on re-centralising energy administration began.[6] China's
energy industries are governed by a number of ministries and commissions, and
companies with varying levels of power and influence, such as the China National
Petroleum Corporation (CNPC) and the China Petroleum and Chemical Corporation
(Sinopec). Both of these companies originally comprised one ministry before being
converted to state companies in the 1980s. They have retained the same hierarchical
rank as government ministries, putting them higher than the sub-ministerial bureau
charged with supervising them.[7] These complicated organisational structures and
interrelationships complicate any efforts to change the way energy is priced and
billed.[6]

Summary Edit


Growth in Chinese GDP and energy use since 1983
Energy in China[8]
Population
(million) Primary energy
TWh Production
TWh Import
TWh Electricity
TWh CO2 emissions
Mt
2004 1,296 18,717 17,873 1,051 2,055 4,732
2007 1,320 22,746 21,097 1,939 3,073 6,028
2008 1,326 24,614 23,182 2,148 3,252 6,508
2009 1,331 26,250 24,248 3,197 3,503 6,832
2010 1,338 28,111 25,690 3,905 3,938 7,270
Change 2004-10 3.3% 50% 44% 272% 92% 54%
Mtoe = 11.63 TWh, excludes Hong Kong.

Environment and carbon emissions Edit

Main articles: Global warming and Environment of China


Countries by carbon dioxide emissions (blue the highest)

CO2 emission per capita per year per country (2000 data)
On June 19, 2007, the Netherlands Environmental Assessment Agency announced that a
preliminary study had indicated that China's greenhouse gas emissions for 2006 had
exceeded those of the United States for the first time. The agency calculated that
China's CO2 emissions from fossil fuels increased by 9% in 2006, while those of the
United States fell by 1.4%, compared to 2005.[9] The study used energy and cement
production data from British Petroleum which they believed to be 'reasonably
accurate', while warning that statistics for rapidly changing economies such as
China are less reliable than data on OECD countries.[10]

The Initial National Communication on Climate Change of the People's Republic of

China calculated that carbon dioxide emissions in 2004 had risen to approximately
5.05 billion metric tons, with total greenhouse gas emissions reaching about 6.1
billion metric tons carbon dioxide equivalent.[11]

In 2002, China ranked 2nd (after the United States) in the list of countries by
carbon dioxide emissions, with emissions of 3.3 billion metric tons, representing
14.5% of the world total.[12] However, due to its huge population size (the largest
in the world), it only ranked 43 in the list of countries by carbon dioxide
emissions per capita, with emissions of 7.6 metric tons per person (compared to
16.4 metric tons per person in the United States).[13] In addition, it has been
estimated that around a third of China's carbon emissions in 2005 were due to
manufacturing exported goods.[14]

Since 2006, China has overtaken the US, producing 8% more emissions than the US to
become the world's biggest emitter of pollution.[15]

Energy use and carbon emissions by sector Edit

In the industrial sector, six industries – electricity generation, steel, non-
ferrous metals, construction materials, oil processing and chemicals – account for
nearly 70% of energy use.[16]

In the construction materials sector, China produced about 44% of the world's
cement in 2006.[10] Cement production produces more carbon emissions than any other
industrial process, accounting for around 4% of global carbon emissions.[10]

National Action Plan on Climate Change Edit

China has been taking action on climate change for some years, with the publication
on June 4, 2007 of China's first National Action Plan on Climate Change,[1] and in
that year China became the first developing country to publish a national strategy
addressing global warming.[17] The plan did not include targets for carbon dioxide
emission reductions, but it has been estimated that, if fully implemented, China's
annual emissions of greenhouse gases would be reduced by 1.5 billion tons of carbon
dioxide equivalent by 2010.[17] Other commentators, however, put the figure at
0.950 billion metric tons.[18]

The publication of the strategy was officially announced during a meeting of the
State Council, which called on governments and all sectors of the economy to
implement the plan, and for the launch of a public environmental protection
awareness campaign.[19]

The National Action Plan includes increasing the proportion of electricity

generation from renewable energy sources and from nuclear power, increasing the
efficiency of coal-fired power stations,[20] the use of cogeneration, and the
development of coal-bed and coal-mine methane.[18]

In addition, the one child policy in China has successfully slowed down the
population increase, preventing 300 million births, the equivalent of 1.3 billion
tons of CO2 emissions based on average world per capita emissions of 4.2 tons at
2005 level.[21]

12th Five-year Plan 2011-2015 Edit

In January 2012, as part of its 12th Five-year Plan, China published a report 12th
Five-year Plan on Greenhouse Emission Control (guofa [2011] No. 41), which
establishes goals of reducing carbon intensity by 17% by 2015, compared with 2010
levels and raising energy consumption intensity by 16%, relative to GDP.[22] More
demanding targets were set for the most developed regions and those with most heavy
industry, including Guangdong, Shanghai, Jiangsu, Zhejiang and Tianjin.[22] China
also plans to meet 11.4% of its primary energy requirements from non-fossil sources
by 2015.[22]

The plan will also pilot the construction of a number of low-carbon Development
Zones and low-carbon residential communities, which it hopes will result in a
cluster effect among businesses and consumers.[22]

In addition, the Government will in future include data on greenhouse emissions in

its official statistics.[22]

Carbon trading scheme Edit

In a separate development, on January 13, 2012,[23] the National Development and
Reform Commission announced that the cities of Beijing, Tianjin, Shanghai,
Chongqing and Shenzhen, and the provinces of Hubei and Guangdong would become the
first to participate in a pilot carbon cap and trade scheme that would operate in a
similar way to the European Union Emission Trading Scheme.[22] The development
follows an unsuccessful experiment with voluntary carbon exchanges that was set up
in 2009 in Beijing, Shanghai and Tianjin.[22]

Fossil fuels Edit


A coal mine near Hailar, Inner Mongolia

Jinling Oil Refinery, Qixia, Nanjing

Oil well in Qaidam Basin, Qinghai
Coal Edit
Main article: Coal power in China
See also: Coal by country and World energy consumption
Coal in China (Mt) [24]
Production Net import Net available
2005 2,226 -47 2,179
2008 2,761 nd 2,761
2009 2,971 114 3,085
2010 3,162 157 3,319
2011 3,576 177 3,753
2015 3,527 199 3,726
Excludes Hong Kong
Coal remains the foundation of the Chinese energy system, covering close to 70
percent of the country's primary energy needs and representing 80 percent of the
fuel used in electricity generation. China is the world's top coal producer and
ranks third in the amounts of coal reserves. China consumes more coal than any
other country. Analysis in 2016 shows that China's coal consumption appears to have
peaked in 2014.[25][26]

Petroleum Edit
Main article: Petroleum industry in China
China's oil supply was 4,855 TWh in 2009 which represented 10% of the world's
supply.[27]

Although China is still a major crude oil producer, it became an oil importer in
the 1990s. China became dependent on imported oil for the first time in its history
in 1993 due to demand rising faster than domestic production.[1] In 2002, annual
crude petroleum production was 1,298,000,000 barrels, and annual crude petroleum
consumption was 1,670,000,000 barrels. In 2006, it imported 145 million tons of
crude oil, accounting for 47% of its total oil consumption.[28][29] By 2014 China
was importing approximately 7 mil. barrels of oil per day. Three state-owned oil
companies – Sinopec, CNPC, and CNOOC – dominate its domestic market.

China announced on June 20, 2008 plans to raise petrol, diesel and aviation
kerosene prices. This decision appeared to reflect a need to reduce the
unsustainably high level of subsidies these fuels attract, given the global trend
in the price of oil.[30]

Top oil producers were in 2010: Russia 502 Mt (13%), Saudi Arabia 471 Mt (12%), US
336 Mt (8%), Iran 227 Mt (6%), China 200 Mt (5%), Canada 159 Mt (4%), Mexico 144 Mt
(4%), UAE 129 Mt (3%). The world oil production increased from 2005 to 2010 1.3%
and from 2009 to 2010 3.4%.[31]

Natural gas Edit

Main article: Natural gas in China

Countries by natural gas proven reserves (2014), based on data from The World
Factbook
China's natural gas supply was 1,015 TWh in 2009 that was 3% of the world supply.
[32]

CNPC, Sinopec, and CNOOC are all active in the upstream gas sector, as well as in
LNG import, and in midstream pipelines. Branch pipelines and urban networks are run
by city gas companies including China Gas Holdings, ENN Energy, Towngas China,
Beijing Enterprises Holdings and Kunlun Energy.

Issued by China's State Council in September 2013, China's Action Plan for the
Prevention and Control of Air Pollution illustrates government desire to increase
the share of natural gas in China's energy mix.[1] In May 2014 China signed a 30-
year deal with Russia to deliver 38 billion cubic metres of natural gas each year.
[33]

China was top seventh in natural gas production in 2010.[31]

Electricity generation Edit


Electricity production in China by source

Liujiaxia Dam in Gansu, China.

Wind farm in Xinjiang, China
See also: Electricity sector in China
In 2013, China's total annual electricity output was 5.398 trillion kWh and the
annual consumption was 5.380 trillion kWh with an installed capacity of 1247 GW
(all the largest in the world). [34]

This is an increase from 2009, when China's total annual electricity output was
3.71465 trillion kWh,[35] and the annual consumption was 3.6430 trillion kWh
(second largest in the world).[36] In the same year, the total installed
electricity generating capacity was 874 GW.[37] China is undertaking substantial
long distance transmission projects with record breaking capacities, and has the
goal of achieving an integrated nationwide grid in the period between 2015 and
2020.[38]

Coal Edit
Main article: Coal power in China
See also: Coal by country
In 2015, China generated 73% of its electricity from coal-fired power stations,
which has been dropping from a peak of 81% in 2007.[24]

Coal electricity in China (TWh) [24]

From coal Total %
2004 1,713 2,200 78%
2007 2,656 3,279 81%
2008 2,733 3,457 79%
2009 2,913 3,696 79%
2010 3,273 4,208 78%
2011 3,724 4,715 79%
2012 3,850 4,937 78%
2013 4,200 5,398 78%
2014 4,354 5,583 78%
2015 4,115 5,666 73%
Renewables Edit
Main article: Renewable energy in China
China is the world's leading renewable energy producer, with an installed capacity
of 152 GW.[5] China has been investing heavily in the renewable energy field in
recent years. In 2007, the total renewable energy investment was US$12 billion,
second only to Germany.[39] In 2012, China invested US$65.1 billion in clean energy
(20% more than in 2011), fully 30% of the total investment by the G-20, including
25% (US$31.2 billion) of global solar energy investment, 37% percent (US$27.2
billion) of global wind energy investment, and 47% (US$6.3 billion) of global
investment in "other renewable energy" (small hydro, geothermal, marine, and
biomass); 23 GW of clean generation capacity was installed.[40]

China is also the largest producer of wind turbines and solar panels.[41]
Approximately 7% of China's energy was from renewable sources in 2006, a figure
targeted to rise to 10% by 2010 and to 16% by 2020.[18] The major renewable energy
source in China is hydropower. Total hydro-electric output in China in 2009 was
615.64 TWh, constituting 16.6% of all electricity generated. The country already
has the most hydro-electric capacity in the world, and the Three Gorges Dam is
currently the largest hydro-electric power station in the world, with a total
capacity of 22.5 GW. It has been in full operation since May 2012.

Nuclear power Edit


Qinshan Nuclear Power Plant, located in Zhejiang China
Main article: Nuclear power in China
In 2012, China had 15 nuclear power units with a total electric capacity of 11 GW
and total output of 54.8 billion kWh, accounting for 1.9% country's total
electricity output. This rose to 17 reactors in 2013. By 2016 the number of
operating nuclear reactors was 32 with 22 under construction and other dozen to
start construction this year. There are plans to increase nuclear power capacity
and nuclear power percentage, bringing the total electricity output to 86 GW and 4%
respectively by 2020.[42] Plans are to increase this to 200 GWe by 2030, and 400
GWe by 2050. China has set an end-of-the-Century goal 1500GWs of nuclear energy,
most of this from fast reactors. China has 32[43] reactors under construction, the
highest number in the world.
Rural electrification Edit
Following the completion of the similar Township Electrification Program in 2005,
the Village Electrification Program plans to provide renewable electricity to 3.5
million households in 10,000 villages by 2010. This is to be followed by full rural
electrification using renewable energy by 2015.[44]

Renewable energy sources Edit

Main article: Renewable energy in China

Although a majority of the renewable energy in China is from hydropower, other
renewable energy sources are in rapid development. In 2006, a total of 10 billion
US dollars had been invested in renewable energy, second only to Germany.[45]

Bioenergy Edit

Jatropha curcas is to be grown for biofuel production
Main articles: Biofuel and Bioenergy in China
In 2006, 16 million tons of corn have been used to produce a first generation
biofuel (ethanol).[46] However, because food prices in China rose sharply during
2007, China has decided to ban the further expansion of the corn ethanol industry.

On February 7, a spokesman for the State Forestry Administration announced that

130,000 square kilometres (50,000 sq mi) would be devoted to biofuel production.
Under an agreement reached with PetroChina in January 2007, 400 square kilometres
of Jatropha curcas is to be grown for biodiesel production. Local governments are
also developing oilseed projects. There were concerns that such developments may
lead to environmental damage.[47]

In 2018, The Telegraph reported that the biofuel industry is further on the rise.
[48] There also seems to be considerable interest in biofuels (i.e. biodiesel,
green jet fuel, ...) [49][50][51][52] which use waste material as the input source
(second generation biofuel).

Solar power Edit

Main article: Solar power in China
China has become the world's largest consumer of solar energy.[53] It is the
largest producer of solar water heaters, accounting for 60 percent of the world's
solar hot water heating capacity, and the total installed heaters is estimated at
30 million households.[54] Solar PV production in China is also in rapid
development. In 2007, 0.82 GW of Solar PV was produced, second only to Japan.[5]

As part of the stimulus plan of "Golden Sun", announced by the government in 2009,
several developments and projects became part of the milestones for the development
of solar technology in China. These include the agreement signed by LDK for a 500MW
solar project, a new thin film solar plant developed by Anwell Technologies in
Henan province using its own proprietary solar technology and the solar power plant
project in a desert, headed by First Solar and Ordos City. The effort to drive the
renewable energy use in China was further assured after the speech by the Chinese
President, given at the UN climate summit on 22 Sept 2009 in New York, pledging
that China will plan to have 15% of its energy from renewable sources within a
decade. China is using solar power in houses, buildings, and cars.[55][56][57]

Wind power Edit

Huitengxile wind farm, Inner Mongolia, China

Main article: Wind power in China
China's total wind power capacity reached 2.67 gigawatts (GW) in 2006, 6.05 GW by
2007, 12.2 GW by 2008, 25 GW by 2009, and 44.7 GW by 2010, making China the world
leader in installed wind power generation capacity.[58][59]
Energy conservation Edit

General work plan Edit

Officials were warned that violating energy conservation and environmental
protection laws would lead to criminal proceedings, while failure to achieve
targets would be taken into account in the performance assessment of officials and
business leaders.[16]

After achieving less than half the 4% reduction in energy intensity targeted for
2006, all companies and local and national government were asked to submit detailed
plans for compliance before June 30, 2007.[60][61]

During the first four years of the plan, energy intensity improved by 14.4%, but
dropped sharply in the first quarter of 2010. In August 2010, China announced the
closing of 2,087 steel mills, cement works and other energy-intensive factories by
September 30, 2010. The factory closings were made more palatable by a labor
shortage in much of China making it easier for workers to find other jobs.[62]

Space heating and air conditioning Edit

A State Council circular issued on June 3, 2007, restricts the temperature of air
conditioning in public buildings to no lower than 26 °C in summer (78.8 °F), and of
heating to no higher than 20 °C (68 °F) in winter. The sale of inefficient air
conditioning units has also been outlawed.[63]

Businesspeople Edit

Chinese billionaires in energy business by Forbes included in 2013 Wang Yusuo &
family ($2.4 B) the chairman of ENN Group, one of China's largest non-government-
controlled energy businesses and Huo Qinghua ( $1.1 B) chairman of China Kingho
Energy Group, one of the country's largest privately held mining and energy
companies, with operations in China, Africa and Mongolia.[64] and in Hong Kong Sit
Kwong Lam ($1.35 B) the founder and chairman of Hong Kong-listed Brightoil
Petroleum.[65]

Public opinion Edit

The Chinese results from the 1st Annual World Environment Review, published on June
5, 2007 revealed that, in a sample of 1024 people (50% male):[66]

88% are concerned about climate change.

97% think their Government should do more to tackle global warming.
63% think that China is too dependent on fossil fuels.
56% think that China is too reliant on foreign oil.
91% think that a minimum 25% of electricity should be generated from renewable
energy sources.
61% are concerned about nuclear power.
79% are concerned about carbon dioxide emissions from developing countries.
62% think it appropriate for developed countries to demand restrictions on carbon
dioxide emissions from developing countries.
Another survey published in August 2007 by China Youth Daily and the British
Council sampled 2,500 Chinese people with an average age of 30.1. It showed that
80% of young Chinese are concerned about global warming.[67]

Protests

See also Edit

Climate change in China

China Energy Conservation Investment Corporation
Environment of China
Electricity sector in China
List of power stations in China
Low-carbon economy
Peak oil
Pollution in China
Renewable energy in China
Wind power in China
Solar power in China
Nuclear power in China
Economics of nuclear power plants
List of countries by energy consumption and production
World energy consumption
Category:Energy by country
References

External links

Last edited 18 days ago by Ita140188

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