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Energy Situation, Security and Policy of China Dr. FENG Fei Development Research Center State Council, PR China. Great Energy Achievement (80’and 90’). Energy density decreased 64% total from 1980-2000, and would wide only 20%, OECD 19%.
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Energy Situation, Security and Policy of China Dr. FENG Fei Development Research Center State Council, PR China
Great Energy Achievement (80’and 90’) Energy density decreased 64% total from 1980-2000, and would wide only 20%, OECD 19%.
Industry structure ( heavy industries vs. light industries) Heavy Light
Projection of energy demand by 2020 10000×TEC 1980 1985 1990 1995 2000 2003 2010 2020
Challenges • The enormous scale of China’s prospective energy needs, unrestrained, raises concern about resource adequacy. • Supplying unrestrained needs on this scale will result in unacceptable environmental damage. • Growing oil import dependence causes an increasing sense of insecurity and will impose greater burdens on the economy.
Oil consumption and import (1993 – 2005) Oil consumption and import growth rate was 17.5% and 35.0% in 2004, but -0.3%, -5.26% in 2005.
Energy Security • 94% energy supply comes from domestic resource in 2005, and about 80% in 2020. Energy import dependency is much lower than the major countries. • Ranking 2nd larger consumer following US, but oil consumption is only less 1/3 compared with US. Oil demand will be 450 million ton by 2020. Oil import dependency will increase to 60%.
Energy Security • Securing of domestic supply. • Establish the oil strategic reserve. • Geographic Diversify. • International cooperation.
Long term target: 2000 – 2020 : quadruple its GDP by 2020 while only doubling its energy use. Mid term target: 2006 – 2010 : energy consumption of per unit of GDP will reduce 20%.
Huge energy saving potential • energy consumption per unit of product of eight major industries (electric power, iron & steel, nonferrous metal, petrochemical, building material, chemical light industry and textile industries) was on average 40% higher than the most advanced world level.
Energy consumption of major product compared with foreign good level
Priority Policy: Improve the energy efficiency. • Changing the economic growth pattern. • Improving the standard of energy consumption for building and enforcement. • Establishing the fuel economy standard for vehicle, and fiscal policy and alternative technology. During 2006-2010, if the population of vehicle doubles and fuel consumption should increase only 50%.
Energy Consumption By sectors (2000 vs. 2020) Building Industry Transportation 2000 2020
Securing and Improving energy supply • 2005, the National People’s Congress passed the Renewable Energy Law. • 10% of energy consumption from renewable sources by 2010, 18% by 2020, 30% by 2030 and 50% by 2100.
Environmental friendship energy • Internalized the external cost. • Control the SO2 emission and others. • Improving the emission regulation.
Technology innovation • Making the National Mid and Long Term Science and Technology Development Program. • Cleaning coal technology, energy saving technology, advanced nuclear power generation technology, fuel-saving and alternative energy vehicle (hybrid, fuel cell etc).
Marketing oriented reform • Pricing reform, more flexible and enough economic incentive for energy saving. • Introduce the competition in the electrical sector. • Strength the regulation.