Agenda
Challenges
Coal is currently the energy cornerstone of industrialization in China and plays a key role in the whole nation’s economic development. China’s coal resource is extensive, while reserves of petroleum and natural gas are relatively low. As a result, coal dominates China’s energy infrastructure. Currently, coal accounts for more than 70 per cent of total energy consumed in China, which is far higher than the world average of 30 per cent. With its fast growing economy, China extracts and consumes more coal than any other nation, and has done for some time.
Political
The National Energy Administration (NEA) is situated within the National Development and Reform Commission (NDRC), China‘s top economic planning agency, and is responsible for development and policy planning with respect to energy. It is not a separate ministry.
Status
International Standings
China produced 40 percent of the world’s solar PV supply, 30 percent of the world’s wind turbines (up from 10 percent in 2007), and 77 percent of the world’s solar hot water collectors.
In 2009 China added 37 GW of renewable power capacity, more than any other country in the world, to reach 226 GW of total renewables capacity. Globally, nearly 80 GW of renewable capacity was added, including 31 GW of hydro and 48 GW of non-hydro capacity.
Also in 2009 China was the top market, with 13.8 GW added, representing more than one-third of the world market—up from just a 2 percent market share in 2004. The United States was second, with 10 GW added.
Import/Export
Chinese exports of wind turbines are likely to have accounted for not more than three percent of total wind turbine capacity produced in China in 2009, while imports of wind turbines are likely to have accounted for less than 0.5 percent of total apparent consumption of wind turbines capacity installed in the Chinese market in 2009.
Taxes
In 2007, the Chinese central government allocated a total of 23.5B RMB¥ ($3.4B) to improve energy efficiency and abate pollution. The funding supported the Ten Key Projects, elimination of inefficient facilities, and environmental protection measures. The Ministry of Finance and NDRC will use a portion of this funding to award enterprises at a rate of 200 RMB¥ ($29) for every tce saved per year for enterprises in East China to 250 RMB¥ ($36) for every tce saved per year for enterprises in Mid or West China related to the implementation of five of the Ten Key Projects.
LBNL
In 2008, the central government allocated even greater funding of 41.8B RMB¥ ($6B) to promote saving energy and reducing emissions. This funding consists of 27B RMB¥ ($3.9B) to promote saving energy and reducing pollutant emissions from the Ministry of Finance and 14.8B RMB¥ ($2.1B) from the Central Construction Investment.
LBNL
China pledged to reduce its carbon intensity—the amount of carbon dioxide emissions (CO2) emitted per unit of gross domestic product (GDP)—by 40 to 45 percent by 2020 based on 2005 levels, and to raise the share of non-fossil sources of energy (i.e., renewables and nuclear) to 15 percent of its primary energy consumption by 2020, from about 9.9 percent as of the end of 2009.
NRDC
Institutional Structure
National Development and Reform Commission
Main functions of the NDRC are:
a. Promote the strategy of sustainable development.
b. Undertake comprehensive coordination of energy saving and emission reduction.
c. Organize the formulation and coordinate the implementation of plans and policy measures for recycling economy, national energy and resource conservation and comprehensive utilization.
f. Participate in the formulation of plans for ecological improvement and environmental protection.
e. Coordinate the solution of major issues concerning ecological building, energy and resource conservation and comprehensive utilization.
d. Coordinate relevant work concerning environment-friendly industries and clean production promotion.
NDRC
The National Energy Administration
The National Energy Administration (NEA) is situated within the National Development and Reform Commission (NDRC), China‘s top economic planning agency, and is responsible for development and policy planning with respect to energy.
The National Energy Commission
The National Energy Commission (NEC) was officially formed in 2010 and is responsible for coordinating energy planning among different government agencies and formulating a national energy strategy. The NEA is subordinate to the NEC.
The State Electricity Regulatory Commission
The State Electricity Regulatory Commission (SERC) is a government agency responsible for regulating China‘s power and electricity industry, including promulgating and ensuring compliance with relevant laws and regulations.
Composition
Use
China was the top installer in 2009, representing more than one-third of the world market. By comparison, China accounted for only about 2 percent of the market in 2004, when annual global installations were just over 8 GW.
China's installed wind power capacity reached nearly three times the country's installed nuclear capacity in 2009, with just over 13.8 GW added to reach a total of 25.8 GW. This means that China doubled its existing wind power capacity for the fifth year running in 2009.
China installed the first major offshore wind project outside of Europe in 2009, adding 63 MW by year-end for a project that reached 102 MW upon completion in early 2010.
Research and Development
Status
In December 2009, China made its commitment to reduce carbon dioxide emissions per unit of GDP in 2020 by 40 percent to 45 percent compared with 2005 levels. Meanwhile, Chinese companies are already seizing some of the opportunities of the low carbon development model, with a renewable energy sector already worth $17 billion and employing close to one million workers.
The National Development and Reform Commission (NRDC) is promoting “Wind Power
Concessions” for large scale commercial development. It will encourage the local authorities to invite investors, both international and domestic, for developing 100 MW size wind farms at potential sites, with a tendering procedure aimed at bringing down the generating cost and increasing the proportion of locally made components.
Areas
In 2008 and 2009 the central government earmarked RMB 41.8 billion and RMB 49.5 billion for energy conservation and emission reductions respectively. The central government has also earmarked a large amount of funding for new renewable energies such as wind power, solar energy and biomass energy.
Distribution
Agenda
China’s current transmission infrastructure is poorly designed and managed. The majority of China’s energy resources and power generation capacity is concentrated in areas far away from the densely populated, energy hungry east coast. To combat deprived power distribution and to unify the disparate regional grids, China’s government intends to construct three major transmission lines, each expected to reach 20 GW of transmission capacity by 2020.
In January 2011 Telvent announced that it has expanded its partnership with China South Grid Guizhou Electric Power Company. Based on a previous pilot project, Telvent will now provide its Distribution Management System to Guizhou Power's entire service territory.
Transition to Globalisation
China Blows past EU, US with Wind Turbines
China installed more new wind turbines than either Europe or the United States last year, the Global Wind Energy Council (GWEC) says.
Globalisation->Economy->Energy->Sources->Renewable->Wind
Transition to Political Tools
China Surpasses US As World's Top Energy Consumer
International Energy Agency said China's energy consumption has more than doubled in less than a decade.
Political Tools > National > China > Dom. Policies > Economy > Energy
Transition to Political Actors
NGO's Energy Forum Underway in Beijing
This articles announces "the start of JUCCCE, the Joint US-China Cooperation on Clean Energy, China Energy Forum in Beijing, which gathers 300 delegates from around the world in sectors ranging from government to industry to NGOs.
Political Actors > Civil society > NGOs > Energy
China Daily
