China’s Sustainable Energy Policy

Ping He Ph.D.
International Fund for China’s Environment
Current status

China is the second largest energy consumption country in the

world

China’s energy is 90% self-sufficient

China’s per capital energy consumption is about the world average.

China’s energy is heavily relying on coal ( 1.9 billion TOE , about

50% production of the world)
Challenges

China’s economic growth was 10.5%/year from 2001-

2010, expect 7-8% /year from 2010-2020, significantly
higher than the world average.

China’s energy demand is expected to continue to

increase

China’s CO2 emission is the largest in the world.

China’s cities are badly polluted.

China’s energy demand is expected to
continue to increase
CO2 emission by countries
Air pollution in Beijing
Energy targets in the 12th five-year plan
(from 2011 to 2015/2020)
 Sustainable Energy Policies

Principles

Energy conservation first

Based on domestic sources
Diversifying
Protecting environment
Innovation in science & tech
Deepening reforming
International cooperation
Improving livelihood
 Sustainable Energy Policies

Priorities

Fully implement energy conservation

Develop clean and renewable

energies

Promote clean use of fossil energies

 Sustainable Energy Policies

Fully implement energy conservation

•Adjust industrial structures

•Enhance industrial energy saving

•Implement building energy conservation

•Improve energy saving in transportation

•Promote public participation

Energy Efficiency- Iron & Steel Industry 2005-2010

700

680

660

640

620

600

580

560 1 2 3 4 5 6
2005 2006 2007 2008 2009 2010

Change in Energy Intensity, China Iron & Steel Industry, 2005-2010,

Source: CISIA, May 2011 (Unit: kg of coal / ton )
Energy Efficiency- Transportation

Corporate Average Fuel Economy of China, Australia and USA (Unit: MPG)
Energy Efficiency-A cement plant with waste heat power plant
in Shanxi
 Sustainable Energy Policies

Priorities

Develop clean and renewable

energies

•Hydropower
•Nuclear energy
•Solar energy
•Wind energy
•Biomass energy
•Others
Coal problems

health problem

environmental problem

safety problem

coal efficiency
Hydroelectricity
China has a goal to generate at least 15 percent of total
energy output by 2020 using renewable energy sources
as the government aims to shift to a less-resource
intense economy. According to the consultancy EC
Harris, in 2010, China is the world's top investor in
renewable energy projects, having invested around
$120 billion to $160 billion between 2007 and 2010.

In 2009, China was the world’s largest producer of

hydroelectric power. In the same year, China generated
549 Bkwh of electricity from hydroelectric sources,
representing 16 percent of its total generation. Also,
according to FACTS Global Energy, installed generating
capacity was around 197 GW in 2009, accounting for
over a fifth of total installed capacity. These figures are
likely to increase given the number of large-scale
hydroelectric projects planned or under construction in
China, and the government’s State Energy Bureau
announced plans to increase hydro capacity to 380 GW
by 2020. The largest power project is the Three Gorges
Dam along the Yangtze River, which includes 32
separate 700-MW generators, for a total of 22.5 GW.
solar energy-solar power
50% solar PV panels are
manufactured in China

In 2010, China produced .58 GW

solar power, a relatively small
number. The cost is still 3-4 times
higher than coal power

For grid-connected generation, a

fixed purchase price is set

For rooftop solar power, gov.

provides financial aids up to 50% of
the cost

Target for 2015, 10 GW

Biomass comprehensive utilization as a
symbol of green living in rural area of
Shaanxi
nuclear power
China is actively promoting
nuclear power as a clean and
efficient source of electricity
generation. China’s government
forecasts that over 70 GW will
be generated by 2020, about
6% of total energy. As of 2012,
China has 16 operating
reactors, 26 new nuclear power
plants under construction.
Wind power
Cost comparison across energy sources
 Sustainable Energy Policies

Priorities

Promote clean use of fossil energies

•Mining coal with high efficiency and

safety
•Developing power plants with high
efficiency and clean production
•Exploring unconventional oil/gas actively
•Enhancing energy transporting system
 Sustainable Energy Policies

Opportunities for international

cooperation/investments

•Advanced technologies in clean

energy development
•Advanced technologies in energy
conservation, esp. in industrial sectors
•Advanced technologies in clean
energy vehicles
•Energy service systems (smart grid,
energy management contract, etc.)
•Capacity building (tech training, policy
consulting, etc.)
Growth of China’s Energy Service Industry
2005-2010

Year Revenue Total EMC

Investment Project
Investment
2005 47.3 30.6 13.1
2006 82.6 63.3 18.9
2007 217.6 114.6 65.5
2008 417.3 253.2 116.5
2009 587.7 360.4 186.3
2010 780.4 287.5

Unit: 100 million RMB. $1=6.8 RMB

Source:
ESCO Committee of China’s Energy Conservation
Association
Sustainable Energy Policies

Contact Ping He phe@ifce.org

202-822-2141, www.ifce.org